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CONDUIT CAPITAL LIMITED - Press Release - Conduit Capital to Merge with Legal Shield Holdings

Release Date: 27/03/2020 13:30
Code(s): CND     PDF:  
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Press Release - Conduit Capital to Merge with Legal Shield Holdings

Incorporated in the Republic of South Africa
(Registration number 1998/017351/06)
Share code: CND      ISIN: ZAE000073128


 Johannesburg – Conduit Capital (“Conduit”) is pleased to announce the acquisition of Legal Shield Holdings
 (“LSH”) by way of a reverse merger into Conduit. Through the transaction, LSH will become the majority
 shareholder of Conduit. Conduit is acquiring LSH for R10.4 billion through the issue of new shares in Conduit.
 Conduit shareholders are expected to receive approximately R1.7 billion in value through this transaction.

 Conduit is a JSE-listed investment holding company with its primary investment in Constantia Insurance
 Group (“Constantia”), a 100%-owned subsidiary. Constantia generated over R2 billion in premiums in fiscal
 2019. LSH is a diversified Namibian financial services company and the owner of Trustco Bank, Trustco
 Properties, Trustco Finance and IoL (student lending), Trustco Insurance and Trustco Life. LSH has a long
 record of exceptional value creation over the past 26 years.

 On completion, the merged Conduit and LSH business is expected to have assets in excess of R7.5 billion.
 Conduit will benefit from access to resources to support its objective of growing Constantia into a diversified
 insurer of size in South Africa.

 The acquisition of Legal Shield is in addition to the already announced transaction to acquire certain property
 developments from Trustco, which boosts Constantia’s capital by approximately R1 billion. This transaction
 continues and it not affected by the acquisition of LSH.

 Sean Riskowitz, Chief Executive Officer of Conduit said: “The transaction represents a pivotal point in the
 evolution of Conduit. It allows for Constantia, our insurance business, to access significant capital to grow
 under the leadership and guidance of entrepreneurs with an outstanding track record.”

 Quinton van Rooyen, Managing Director of Trustco Group Holdings adds: “Trustco has a history of
 empowering extraordinary people to create extraordinary wealth over time. The combination of Legal Shield
 and Conduit is the next step on the journey”.

 A comprehensive presentation detailing the transactions is available on our website at A conference call is scheduled for 1 April 2020 at 15h00
 South African time to discuss the transaction. For further detail please contact Rene Kok at

 Notes – Conduit Capital Ltd is a JSE-listed investment holding company, and the owner of Constantia
 Insurance Group. Legal Shield Holdings is a diversified Namibian financial services company and a
 subsidiary of Trustco Group Holdings Limited.

27 March 2020

Merchantec Capital

Date: 27-03-2020 01:30:00
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