Trustco Group Holdings has bought 1 135 Legal Shield holding shares from Riskowitz Value Fund.
This increases the company’s shareholding in Legal Shield to 91.35%.
Trustco on Monday announced that shareholders had approved the N$469 million acquisition of additional shares.
Trustco deputy chief executive Quinton van Rooyen says this new investment is a sign of belief in Namibia’s economic potential.
“By deepening our commitment to the opportunities inherent in Namibia’s growing property and insurance sectors, we are not just investing in Trustco’s future but also contributing to the country’s broader economic and social development,” he says.
The transaction was initially announced in April last year, however, there were delays.
“Delays in implementing commercial transactions for any reason ultimately impact our ability to create and unlock shareholder value in a timely manner,” says van Rooyen.
The company will also be increasing its activities in the property development market.
Legal Shield’s assets include Trustco Insurance Limited, Trustco Life Limited, and a prime real estate portfolio spanning over 2 473 hectares.
According to van Royen, the company’s real estate portfolio has generated N$934 million in cash since 2011.
“The extensive land bank presents development opportunities for more than 26 000 mixed-use erven, providing meaningful solutions to Namibia’s acute shortage of serviced land,” says van Rooyen.
Just last year, a Trustco Holdings subsidiary, Trustco Bank Namibia, had its banking licence revoked by the Bank of Namibia due to non-compliance.
This was after the company had received temporary suspension to allow them to rectify the non-compliance with the Banking Institutions Act.
The company was also required to present its deposit repayment plan to clients.
At the time, van Rooyen said the company was shifting towards non-deposit-taking financial services, where it sees tremendous growth potential.
The company’s last annual results show that the overall value of Trustco’s investments, properties and other holdings has seen a continuous decline, dropping to N$1.1 billion.
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