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The market value of Namibian multimillionaire businessman Quinton van Rooyen’s stake in Windhoek-based investment holding Trustco Group Holdings has fallen by R803.2 million ($47.1 million) since the start of the year.
The slump in the market value of stake stake comes as shares in the group fell to an all-time low amid a protracted listing dispute with the Johannesburg Stock Exchange.
The multimillion-dollar decline in the value of van Rooyen’s stake follows a $29-million rise in his net worth in the first week of this year due to a double-digit increase in Trustco shares.
Trustco, a diversified investment holding majority owned and operated by the Namibian van Rooyen family, takes pride in its investments in high-quality world-class assets in the financial services and resources industries, which generate long-term sustainable growth for stakeholders.
Van Rooyen, a prominent Namibian businessman, and the group’s CEO, owns 63.94 percent of the company. His stake totals 1,004,000,060 ordinary shares.
The R803.2-million ($47.1 million) drop in the market value of his shareholding since the start of this year can be attributed to investor reactions to accusations from the Johannesburg Stock Exchange’s (JSE) regulators regarding Trustco’s 2019 financial statement, which they believe was misleading.
According to the allegations, the JSE intends to delist Trustco’s shares from the bourse on July 29 for failing to comply with its coverage on restating 2019 financials.
It also accused Trustco of violating international accounting standards by misrepresenting features of two loans and reclassifying land that it owns.
After asserting that all the transactions had been “exactly accounted for, reported, and disclosed,” Trustco questioned the JSE’s authority to order corporations to amend their financial statements, claiming that only boards have that authority.
In light of recent developments and the planned delisting of Trustco shares, investors and traders on the JSE have continued to sell their shares in the holding, resulting in a drop in the group’s share price below its JSE debut price in 2009.
Since the start of the year, shares in the group have fallen by 64 percent, from R1.25 ($0.0733) to R0.45 ($0.0264) at the time of writing, while van Rooyen’s stake has dropped by R803.2 million ($47.1 million), from R1.25 billion ($73.54 million) to R451.8 million ($26.47 million).
