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Trust Bank still courting investors

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Trust Holdings Limited is still locked in negotiations with South African investors three months after the company announced that is looking for a taker for its 25% stake to recapitalise the group.

The company wants to dispose a 25% stake that was formerly held by First Mutual Life when the two companies had a share swop.

Trust Bank chief executive officer William Nyemba in an emailed response said: “We are still in negotiations with potential investors and as such cannot divulge details to the public yet.”

In June Nyemba said a couple of investors from South Africa had shown interest in snapping up the stake and injecting money into the bank.

First Mutual Life and Trust Holdings had a share swop deal before the latter was placed under curatorship in 2004.

Asked whether the bank had since returned to profitability since its market update in June when the entity had failed to reach its target of breaking even, Nyemba said: “In addition, as a listed corporate, the performance of the entity can only be revealed to shareholders first at an annual general meeting.”

In June Nyemba told shareholders: “We thought in June we would start to break even, but I think with the unfortunate development we need to deploy some tactics to go back to profitability. We have to relook and recapitalise.”

The holdings company’s subsidiaries include Trust Bank Corporation Limited, Trust Risk Services Limited, Trust Properties (Pvt) Ltd and Trust Agriculture.

Trust Holdings holds 100% in Trust Bank Corporation and Trust Risk Service while it controls a 90% stake respectively in Trust Properties and Trust Agriculture.

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