Bank Windhoek acquires Capricorn Asset Management

Bank Windhoek Holdings (BWH) is set to acquire Capricorn Asset Management (CAM) for N$128 million. In terms of the agreement, Bank Windhoek Holdings Limited will acquire 100% of the issued share capital of CAM as at the effective date of January 1, 2014. Capricorn Investment Holdings Limited, Nam-mic Financial Services Holdings and the Bank Windhoek Holdings Group Employee Share Ownership Trust collectively hold 100% of the issued ordinary share capital of CAM. The bank said that the acquisition of CAM is aimed at diversifying its current business. “The key motivations for the transaction are to drive synergies between the value offering in the Bank Windhoek Holdings Limited group and CAM; the diversification of Bank Windhoek Holdings' income streams; and growth potential,” said Christo de Vries, Managing Director of Bank Windhoek Holdings Limited. Due to the transaction being regarded as a small related party transaction, Bank Windhoek Holdings requested an independent opinion regarding the value of CAM from IJG Securities, who expressed the opinion that the transaction is fair and reasonable to all Bank Windhoek Holdings shareholders. Bank Windhoek Holdings Limited will purchase the shares from the sellers for N$128 million in cash, subject to terms and approvals. These include the performance of a due diligence investigation to the satisfaction of Bank Windhoek Holdings, approval from the Bank of Namibia and approval by the Namibia Financial Institutions Supervisory Authority (Namfisa). CAM is one of Namibia’s leading asset management companies in the capital and money market industry with N$10.4 billion under management as at December 31, 2013. The company was launched in July 2006 as a licensed local and independent asset management company. The company currently manages and administers 13 unit trust funds and a number of segregated portfolios which include pension fund mandates. The Bank Windhoek Unit Trust funds constitute the largest portion of the assets under management. WINDHOEK ANDRÈ LE ROUX