Namibian Tycoon Quinton van Rooyen’s Trustco Converts $238M Debt into Equity

Trustco Group, a famous investment holding firm principally controlled by Namibian billionaire Quinton van Rooyen and his family, has successfully completed a planned maneuver to convert significant liabilities into equity, thus eliminating debt and strengthening its financial position.

The program, which aims to erase legacy debt and strengthen its balance sheet, entails the conversion of NAD4.43 billion ($238.4 million) in debt into equity. This comprises a related party loan for NAD1.48 billion ($79.49 million) and an outstanding purchase price of NAD2.95 billion ($158.54 million) for mining assets. The conversion is based on the audited Net Asset Value (NAV) as of August 31, 2023, with shares issued at a conversion price of NAD1.17 ($0.0637) each.

“This strategic move not only eliminates our significant debt obligations, but also strengthens our equity base,” a Trustco representative stated. The conversion, which is scheduled to be completed by August 31, 2033, is subject to regulatory clearances from the Namibian Competition Commission and the Bank of Namibia, shareholder permission, and the finalization of restructuring and settlement agreements with the International and African Lender Group.

The financial maneuver follows Trustco’s disclosure of a new credit deal, which eliminates the need for the previously issued cautionary remark. The new terms allow Next, the Van Rooyen family’s investment entity, to postpone repayment, which was originally due on March 31, 2024.

Trustco Group, headquartered in Windhoek, works in a variety of industries, including banking, insurance, property, and wealth management. With a wide investment portfolio and considerable assets denominated in both US and Namibian currencies, the company is well-known for its strong asset allocation technique.

Quinton van Rooyen and his family own 63.94 percent of Trustco Group, demonstrating their influence over the company’s operations and strategic decisions. This ownership strengthens their position as major participants in Namibia’s financial environment.

The strategic conversion of debt into equity is a watershed moment for Trustco Group, preparing the company for long-term growth and stability. With a renewed emphasis on high-quality assets and a stronger financial base, Trustco is well-positioned to capitalise on upcoming possibilities and cement its position as Namibia’s leading diversified player.

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