Capricorn Holdings, which owns lender Bank Windhoek, has acquired a 30 percent stake in telecommunication and technology company, Nimbus Infrastructure Limited.
Capricorn believes the convergence between telecommunications and financial services poses a real risk for the financial services sector.
“This, combined with strong growth in demand for data services, prompted the group to invest in Nimbus, a telecommunication and technology investment company, at the time of its listing on the Namibian Stock Exchange (NSX),” the company said.
Nimbus owns 51.4 percent of the issued shares of Paratus, a company that provides communication, connectivity, carrier, customer, cloud, and cluster services to the public, private and corporate sectors in Namibia.
Capricorn Holdings’ financial results for the year ended 30 June, showed the group has continued to depend on Bank Windhoek, which, during the year under review, contributed 86 percent of group profit after tax compared to 83 percent in 2017.
“In pursuit of its strategic intent to diversify its profit streams, the group increased its investment in Bank Gaborone from 68.7 percent to 84.3 percent with effect from 1 January 2018.”
Capricorn said it expects strong growth over the next few years from Bank Gaborone, increasing its contribution to between 8 and 10 percent of the group profit after tax.
The group also acquired a controlling interest in Entrepo, which participates in micro-lending, life insurance and income protection business in Namibia.
“Entrepo has an attractive share of the government employee market and complements Bank Windhoek’s own micro-lending activities through subsidiary BW Finance, which focuses mainly on union members. The group expects Entrepo to contribute around 15 percent of the group’s profit after tax in future.”
Capricorn Capital started operations in the first quarter of 2018, offering investment banking, advisory services and solutions in southern Africa.
“This includes corporate finance advice, capital restructuring, mergers and acquisitions, as well as capital fundraising.”
Thinus Prinsloo, Group Managing Director, said normalised total comprehensive income decreased by 5.5 percent when compared to the year ended 30 June 2017, mainly weighed down by the disappointing results of the Zambian operations.
Loans and advances increased by 8.4 percent to N$36.2 billion of which 2.6 percent relates to the acquisition of Entrepo.
Income from associates increased by 6.6 percent to N$83.2 million and contributed 8.9 percent (June 2017: 8.5 percent) to profit after tax.
Non-interest income increased by 22.7 percent to N$1.2 billion.