Trustco in N$60 mln deal with Finbond Group

Trustco Group Holdings (TGH) has sold 49% of its interest in Trustco Finance to Finbond Group, a financial services institution operating in South Africa and North America.

TGH released a statement on Friday, saying it was a “strategic decision to divest a portion of its investment in its banking and finance portfolio”.

In a statement released by Finbond, the group said the purchase consideration payable by the group will be R60 million.

Finbond specialises in providing unique value- and solution-based savings, insurance, as well as transactional banking products, Trustco said.

Trustco Bank (TBN) forms part of TGH’s banking and finance portfolio.

Late last year, the Bank of Namibia’s (BoN) filed an application in the High Court of Namibia for the liquidation of TBN, saying it is “both factually and commercial insolvent, and as such is unable to pay its debts”. This battle between TGH and the BoN is ongoing.

Trustco on Wednesday released it interim results for the six months ended 28 Ferbuary 2023, reporting a loss of N$250 million.

The deal with Finbond is contingent upon fulfilling several conditions precedent, Trustco said this afternoon.

“These include obtaining approvals from Finbond's board and investment committee, as well as Trustco's board and investment committee, as well as all necessary regulatory approvals,” the group said.