Trustco: Mining deal is changed
A controversial share repurchase arrangement continues to turn heads
Namibian investment company Trustco has dramatically altered the terms of a controversial R3.6bn diamond mining deal — which is still awaiting approval from mining authorities. In late 2015 Trustco proposed buying diamond mining and gem polishing assets, held under Huso and Morse. It was a related-party deal because the assets were owned by CEO Quinton van Rooyen, who will get new Trustco shares as payment. It’s a risky deal because the "paper" value of the diamond assets — which have no meaningful profit history or solid tangible asset underpin — are worth more than Trustco’s R2.3bn market capitalisation.
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