Namibian businessman Quinton van Rooyen’s investment holding company, Trustco Group, has announced the initiation of a share repurchase program to be conducted during its closed period, which commenced on Sept. 1, 2023.
The move aimed at enhancing shareholder value will see Trustco Group under van Rooyen repurchase up to NAD197 million ($10.35 million) in shares directly, subject to Johannesburg Stock Exchange (JSE) listing requirements.
Van Rooyen, deputy CEO of Trustco Group, highlighted the company’s commitment to maximizing shareholder value. He acknowledged the substantial fluctuations in Trustco’s share price, ranging from a high of R16 ($0.84) per share in January 2019 to a low of R0.24 ($0.0126) per share in July 2023.
The share repurchase program is underpinned by Trustco’s robust balance sheet and strong cash flows, enabling the company to acquire shares during periods of undervaluation opportunistically. It reflects the company’s confidence in its underlying fundamental value and dedication to strategies aimed at long-term wealth maximization.
This program will continue until the closed period ends around Nov. 30, 2023, coinciding with the release of the company’s annual audited financial results. The repurchases will adhere to JSE listing requirements and be executed at up to 10 percent above the prior five-day volume weighted average price of Trustco shares preceding each transaction.
In a transformative step, Trustco’s founding shareholders, van Rooyen and Next Capital, announced their intention to convert a NAD1.4 billion ($74.1 million) loan into ordinary Trustco shares.
Under this offer, Next Capital can convert the loan into NAD1.50 billion ($78.8 million) in new ordinary Trustco shares at a fixed price of NAD1.41 ($0.074) per share. This move demonstrates the founders’ confidence in the company’s vision and strategy, underpinning their support for long-term growth plans.
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. The stake, which amounts to a total of 1,004,000,060 ordinary shares in the group, makes him one of Namibia’s wealthiest individuals.