GIPF acquires 25% stake in Capricorn Group

The Government Institutions Pension Fund (GIPF) made a successful bid to acquire a 25% interest in the issued ordinary shares of Capricorn Investment Group.

The transaction was facilitated by Capricorn Investment Holdings Limited (CIH) and the transaction is still subject to the necessary regulatory approvals and conditions precedent that are normal for a
transaction of this nature. A further announcement will be made once the transaction becomes unconditional.

In terms of the agreement, GIPF will acquire a 15.5% interest in Capricorn Group from CIH, and a further shareholding of 9.5% from Namibia Strategic Investments, at a negotiated total consideration in excess of N$2 billion.

Following the transaction, CIH´s shareholding in Capricorn Group will decrease from 56% to 40.5%. The total shareholding of GIPF in Capricorn Group will increase to 26.0%, making GIPF Capricorn Group´s second largest shareholder.

CIH and GIPF will both fulfil the role of shareholders of reference to the group, providing funding support to the group in general and more specifically to its banking operations.

Thinus Prinsloo, Managing Director of Capricorn Group, said, “We are extremely proud that GIPF has selected Capricorn Group for such a substantial investment and believe that it bears testimony to their confidence in the group to continue to deliver attractive, yet sustainable returns and growth to investors. Having GIPF as a shareholder of reference will further enhance this value proposition of Capricorn Group to investors”.

“CIH decided to facilitate the transaction through the reduction of its shareholding because it fully realised the benefits to the group of having GIPF as a substantial shareholder. GIPF showed their commitment to fulfil the role of shareholder of reference by offering immediate long-term senior debt funding of N$1.3 billion to the group as part of the transaction. CIH similarly will also be making long-term funding of N$900 million available to the group. On boarding GIPF as a substantial shareholder will clearly reduce both capital risk and liquidity risk of the group. We enter this new era with GIPF as shareholder with anticipation and confidence and look forward to the role they will play, not only as a shareholder, but also through their representation on the board of Capricorn Group”, said Koos Brandt, chairman of CIH and Capricorn Group.