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Conduit Capital terminates negotiations with Trustco for Herboths, restructuring and Legal Shield deals

Conduit Capital terminates negotiations with Trustco for Herboths, restructuring and Legal Shield deals

The cautionary that has been in place for just over a year for dealings in Trustco shares on the Johannesburg Securities Exchange, was withdrawn last week Thursday, 18 March 2021. The cautionary was revoked after negotiations between Trustco Group Holdings Limited and a major sponsor, Conduit Capital, broke down when the latter terminated the process.

On 14 February, Trustco issued the first of a series of cautionaries in 2020, advising shareholders and investors that is was in negotiations to take over Constantia Risk and Insurance Holdings Ltd, partly owned by the Riskowitz Value Fund who also has substantial shareholding in Conduit Investments, the entity with whom Trustco was negotiating to conclude the Constantia deal.

In last week’s cautionary, Trustco advised that Conduit Capital, the investment arm in the Conduit stable, has terminated the negotiations between themselves and Trustco. This put Trustco basically back to square one with no material change in trading conditions, hence the reason for the revoking of the cautionary.

The result of the termination of the negotiations is that the Herborth’s transaction, the Internal Restructuring transaction and the Legal Shield Holdings transaction will not proceed. This followed after the parties reviewed the terms of disposal of the various transactions.

At the end of January this year, Trustco reported that its revenue has decreased by between 47% and 67% for the eighteen-month period ended 30 September 2020. Trutsco has last paid a dividend to its shareholders in August 2016.

Download the Trustco Integrated Financial Results for the 18-month period ended 30 September 2020.


About The Author

Daniel Steinmann

Brief CV of Daniel Steinmann. Born 24 February 1961, Johannesburg. Educated at the University of Pretoria: BA, BA(hons), BD. Postgraduate degrees are in Philosophy and Divinity. Editor of the Namibia Economist since 1991. Daniel Steinmann has steered the Economist as editor for the past 29 years. The newspaper started as a monthly free-sheet, then moved to a weekly paper edition (1996 to 2016), and on 01 December 2016 to a daily digital newspaper at His editorial focus is on economic analysis based on budget analysis, dissecting strategic planning and assessing the impact of policy formulation. For eight years, he hosted a weekly talk-show on NBC Radio, explaining complex economic concepts to a lay audience in a relaxed, conversational manner. He was a founding member of the Editors' Forum of Namibia. Over the years, he has mentored scores of journalism students as interns and as young professional journalists. He often assists economics students, both graduate and post-graduate, to prepare for examinations and moderator reviews. He is the Namibian respondent for the World Economic Survey conducted every quarter for the Ifo Center for Business Cycle Analysis and Surveys at the University of Munich in Germany. He is frequently consulted by NGOs and international analysts on local economic trends and developments. Send comments to [email protected]