Trustco Group Holdings Announces Share Consolidation for Global Market Alignment

Trustco Group Holdings Limited (JSE: TTO; NSX: TUC; OTCQX: TSCHY) has announced a significant move to implement a share consolidation, also known as a reverse stock split, in response to its recent upgrade of its American Depositary Receipts (ADR) program.

The board has approved and recommended to shareholders a consolidation of shares at a ratio of 20:1. This consolidation aligns with the ADR ratio of 1:20, ensuring consistency between the ADR and JSE trading platforms. While the face value of each share will increase, the intrinsic value remains unchanged. Crucially, this move will not dilute shareholders’ ownership, maintaining proportional stakes and improving the trading experience for both domestic and international investors.

Quinton Z van Rooyen, Deputy CEO of Trustco, emphasized the global focus of this initiative. He stated, “Trustco’s vision is global, and this share consolidation is another step in unlocking that potential. By taking these steps, we are positioning Trustco to not only meet the expectations of international markets but to thrive in them. We are confident that this alignment will strengthen our relationships with both new and existing investors, while allowing us to better compete on the world stage.”

This announcement follows Trustco’s recent plans to upgrade its ADR program to Level 3, which is part of a broader strategy to enhance its presence in the U.S. capital markets. ADRs are negotiable certificates issued by a U.S. depository bank, representing ownership of shares in a non-U.S. company. They allow international investors to trade foreign company shares on U.S. financial markets without direct access to foreign exchanges. Trustco’s ADR program, established in 2014, has enabled U.S. investors to participate in the company’s growth without dealing directly with international markets.

Shareholders will be asked to vote on the share consolidation at an upcoming meeting. Further updates will be provided as the process progresses.

About Trustco

Trustco Group Holdings Ltd, headquartered in Windhoek, Namibia, is an investment entity managing a diverse portfolio that includes insurance, real estate, commercial banking, micro-finance, education, and mining sectors. Since its inception in 1992, Trustco has achieved a compound annual growth rate (CAGR) of 68.97%, with a balanced asset mix of 34% in U.S. Dollar-based assets and 66% in Namibia Dollar-based assets. The company is supported by a broad range of co-investors, including 3,610 from Namibia, 1,443 from abroad, and 94 institutional entities.

About Namibia

Namibia, located in Southern Africa, has a population of approximately three million and a GDP per capita of USD 5,031 as of 2022. The country boasts significant natural resources, including recent discoveries of oil, gas, lithium, and rare earth minerals crucial for global technology needs. Namibia is also advancing green hydrogen projects. The government views these discoveries as transformative, with the potential to double the nation’s GDP by 2040. The economy grew by 4.2% in 2023 and is expected to expand by 3.7% in 2024, following a 5.3% recovery in 2022 from the COVID-19 pandemic. Namibia’s natural resources, business-friendly environment, political stability, and skilled workforce make it an attractive investment destination.

Forward-Looking Statements

This article contains forward-looking statements regarding Trustco’s plans, estimates, strategies, and expectations. These statements are subject to risks and uncertainties and may not reflect actual results. Readers should not place undue reliance on these forward-looking statements, as they are based on assumptions that could change, impacting actual outcomes.