Namibian businessman Quinton van Rooyen’s investment holding company, Trustco Group, has announced a strategic move to shore up its share value with the launch of a share buyback plan.
This initiative, valued at up to R99 million ($5.3 million), aims to counter recent significant declines in Trustco’s share price on the Johannesburg Stock Exchange.
The program, as outlined in a statement from Trustco Group, will be executed during the closed period starting from Sept. 1, 2023, and will run until around Nov. 30, 2023, coinciding with the release of the company’s annual audited financial results.
Trustco Group’s shares experienced a sharp drop below R0.5 ($0.027) per share earlier this week, resulting in substantial losses for its majority stakeholder, van Rooyen. The decline saw him lose more than $50 million between Aug. 2 and 30, 2023.
Under the terms of the share repurchase initiative, Trustco or one of its subsidiaries may acquire a maximum of 197,447,716 shares directly or 98,723,858 shares through a subsidiary. The entire process will be subject to the regulations of the JSE Listings.
Trustco Group Holdings Deputy CEO Quinton Zandre Van Rooyen stated that the share buyback enhances shareholder value amidst significant share price fluctuations, from R1.6 ($0.085) per share in January 2019 to R0.24 ($0.0127) per share in July 2023.
This proactive measure utilizes the company’s robust financial position to acquire undervalued shares, reinforcing Trustco’s commitment to capital allocation and confidence in its fundamental value, all in pursuit of long-term shareholder wealth.
Trustco Group, primarily owned and managed by the Namibian van Rooyen family, has historically invested in premium assets across the financial services and resource sectors, generating sustainable, long-term growth for stakeholders.
Van Rooyen, owns an impressive 63.94-percent stake in the company. This stake, which amounts to a total of 1,004,000,060 ordinary shares in the group, makes him one of Namibia’s wealthiest individuals.
However, the recent performance of Trustco’s shares has been less favorable, plummeting by 67.86 percent from R1.40 ($0.075) on Aug. 2 to R0.45 ($0.0241) at the time of this report, causing substantial financial losses for shareholders, including van Rooyen himself.
This decline comes just a few months after the company’s shares were reintroduced to trading on the Johannesburg Stock Exchange, following a prolonged three-year battle between the Namibia-based investment group and local bourse regulators regarding the accuracy and completeness of the firm’s financial results.
