Capricorn strengthens regional footprint

By Koviao Matuzee

Capricorn Group Limited is set to make a significant entry into South Africa’s financial services market after agreeing to acquire a majority stake in specialist equipment rental and asset financing company Centrafin (Pty) Ltd for an enterprise value of R788.3 million.

The Namibian financial services group has made a binding offer to acquire an initial 81.6% interest in Centrafin from Fonzosys (Pty) Ltd, part of the Alviva Group.

Capricorn will have the option to acquire the remaining shares over a five-year period.

The transaction forms part of Capricorn’s strategy to diversify its revenue base beyond Namibia and Botswana and increase its presence in South Africa through strategic investments.

According to Capricorn, the deal also marks an expansion beyond its traditional banking activities into specialist asset finance and non-bank lending.

Group chief executive officer David Nuyoma described the proposed acquisition as a significant step in building a more diversified regional financial services group.

“South Africa is an important market in our growth ambitions,” Nuyoma said.

He also added that Centrafin provides an opportunity to enter the market through an established financial services business.

Centrafin has built a R3 billion asset finance book covering a broad range of asset classes.

The company has evolved from a technology equipment rental business into a diversified asset finance house.

Nuyoma said Capricorn was attracted by Centrafin’s established brand, experienced employees, entrepreneurial culture and customer relationships.

The group intends to retain the Centrafin brand following the acquisition, while using Capricorn’s resources and financial services experience to support the company’s further growth.

“We see significant potential in bringing together the respective strengths of Capricorn Group and Centrafin to create sustainable, long-term value,” Nuyoma said.

Centrafin managing director Jenny Gill said the transaction would provide the company with a platform for its next phase of growth.

Gill said Centrafin had spent considerable time identifying a long-term partner that would recognise the strength of its people and brand while helping accelerate its ambition of becoming a leading, multi-faceted finance business.

The transaction, however, is not yet complete.

The R788.3 million enterprise value remains subject to the finalisation of Centrafin’s audited financial results, while the implementation of the deal is dependent on several regulatory and other conditions.

These include approvals from the Bank of Namibia and South African Competition Commission, as well as compliance with applicable Namibia Securities Exchange requirements.

Certain conditions precedent must be fulfilled or waived by January 31, 2027, unless the parties agree in writing to a later date.

Capricorn said customers and business partners should continue using their existing Centrafin teams and service channels while the transaction progresses.

The proposed acquisition gives Capricorn a foothold in South Africa while adding a specialised asset finance business to its portfolio, potentially broadening the group’s earnings base and regional reach.

Capricorn said it would keep the market informed of material developments as the transaction moves towards completion.

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