Founder shareholders offer to convert a loan of N$1.4 billion into ordinary Trustco shares
Trustco Group Holdings has recently taken a significant step forward in its 31-year journey. The company’s founding shareholders, Dr. Quinton van Rooyen and Next Capital – the investment vehicle of the Van Rooyen family – have offered to convert a loan of N$1.4 billion into ordinary Trustco shares.
This move is set to have a transformative effect on the company’s financial standing and marks a major milestone in its history.
Trustco in a statement said the offer entails that Next will have an option to convert its N$1.4 billion loan into one billion and fifty million, new ordinary Trustoc shares at a fixed price of N$1.41 per share. “The loan will stop accruing interest from the date of shareholder approval. The conversion price and terms will not change regardless of Trustco’s share trading price or listing status. Should the entire loan be converted, Next’s shareholding in Trustco will increase to 69.8% of issued shares,” they added.
Deputy Chief Executive Officer at Trustco, Quinton Z van Rooyen, said this is a historic moment for Trustco and the capitalization offer demonstrates their founding shareholder’s confidence in their vision and strategy, as well as their support for Trustco’s long-term growth plans.
“We appreciate their foresight in providing us with this opportunity to enhance shareholder value and pursue new opportunities in our market. We have experienced significant fluctuations in our market capitalisation price which decreased from an all-time high of N$15.6 million in January 2019 to a mere N$237 million in July 2023. Based on the current price of 50c per share the capitalization offer is priced at a substantial premium to market price,” he added.
Trustco further explained that the capitalization is expected to have a positive impact on Trustco’s Net Asset Value (NAV). “The full financial effect and the detailed terms of the capitalisation will be contained in a circular to shareholders which will also include the date of the general meeting. The offer requires shareholder approval, as well as a fair opinion by an independent expert, in compliance with JSE Listing Requirements. The board approved the transaction at its meeting on 31 August,” they said.
Further, they said the shareholders will also vote on increasing Trustco’s authorized share capital from 2.5 billion shares to 3.5 billion shares.
