GIPF dominates Capricorn Group shareholding

The successful bid of the Government Institutions Pension Fund (GIPF), the largest institutional investor in Namibia, to acquire a 25% interest in the issued ordinary shares of Capricorn Investment Group Limited has been set in ink.

“We are pleased to announce that all the necessary regulatory approvals have been obtained and that the transaction has become unconditional and has been concluded.” In terms of the agreement, GIPF acquires a 15.5% interest in Capricorn Group from Capricorn Investment Holdings (CIH) and a further shareholding of 9.5% from Namibia Strategic Investments, at a negotiated total consideration in excess of N$2 billion.

CIH’s shareholding in Capricorn Group decreases from 56% to 40.5%. The shareholding of GIPF in Capricorn Group increases to 26%, making GIPF the group’s second largest shareholder. CIH and GIPF will both fulfil the role of shareholders.

As previously disclosed, due to the substantial benefits to Capricorn group of having GIPF as a substantial shareholder, CIH decided to facilitate the transaction through the reduction of its shareholding.

GIPF showed their commitment to fulfil the role of dominant shareholder by offering immediate long term senior debt funding of N$1.3 billion to the group as part of the transaction. On-boarding GIPF as a substantial shareholder reduces both the capital risk and liquidity risk of the group.

Also included as an attachment is the revised Capricorn Group structure as at 12 May 2017 which reflects the confirmed GIPF shareholding. It also shows the restructuring of the group’s investments in Zambia and Botswana, with Capricorn Group now holding a 65% shareholding in Capricorn Investment Holdings Botswana and a 97.9% effective shareholding in Cavmont Capital Holdings Zambia.

“Capricorn Group views these transactions as key to achieving our aim of diversifying our business interests and expanding our footprint in the geographical regions we operate in”, said Koos Brandt, chairman of CIH and Capricorn 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 shareholder, but also through their representation on the board of Capricorn Group.”