N$1.2 bn for stake in Legal Shield

Staff reporter - Trustco Group Holdings has entered into a sale of shares agreement with Riskowitz Value Fund LP in terms of which the Namibian-based company will dispose of 20% of the issued share capital of Legal Shield Holdings.

The price tag on the proposed transaction is R1.2 billion, Trustco said in an announcement on the Namibian Stock Exchange (NSX) and JSE on Friday.

The transaction would significantly increase the available liquidity in Namibia, Trustco said. “The consideration would be deployed across the Trustco group to accelerate growth in the other group segments,” according to the statement. It will also provide future investors the opportunity to invest directly into asset classes that are geared to their specific portfolios.

Legal Shield Holdings is a wholly owned subsidiary of Trustco and acts as the holding company for the Namibian insurance segment and a portion of the investment segment of Trustco’s operations.

“Legal Shield Holdings owns Trustco Life Limited and Trustco Insurance Limited which house the Namibian long-term and short-term insurance licenses respectively. The investment segment comprises inter alia, Trustco’s property, air services and the strategic media services segments. It specifically excludes the banking and finance, educational business and resources segments,” according to the statement.

The NSX announcement states that the value of the net assets and profits attributable to Legal Shield Holdings as at 31 March 2017, being Legal Shield was about N$2.16 billion and nearly N$621.6 million respectively.

The transaction is subject to, among others, regulatory approvals.

Trustco closed at N$7.89 per share on the overall index of the NSX on Friday, up 43.5% or N$2.39 a piece from Thursday.

The company share price has increased by N$4.94 or nearly 168% so far this year.