Namibian investment company Trustco seems to enjoy some extremely generous patronage from large shareholder Riskowitz Value Fund (RVF), a US-based firm. The Financial Mail has already reported on the eyebrow-raising transaction in which RVF will fork out R1.2bn to buy a 20% stake in unlisted Trustco subsidiary Legal Shield, which houses mainly the company’s insurance and property interests. At the time of the proposed transaction, late last year, the inferred value of Legal Shield was more than the market capitalisation of Trustco, which sparked a huge rally in the share price, albeit at low volumes. The release of a circular detailing the proposed transaction coincides with the Financial Services Board (now the Financial Sector Conduct Authority) naming Trustco in a list of companies being investigated for possible market manipulation. The investigation, interestingly enough, covers trades in Trustco shares from December 2017 to February this year. Between early November and mid-Ja...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, Morningstar financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.