Capricorn Group to Acquire Majority Stake in Centrafin

Capricorn Group Limited has secured a binding offer to acquire a majority stake in Centrafin, a South African asset financing and equipment rental firm. The deal, valued at R788.3 million, marks a significant step in Capricorn Group’s expansion strategy, diversifying its revenue sources beyond Namibia and Botswana.

Under the proposed transaction, Capricorn Group will initially acquire 81.6% of Centrafin, with the option to increase its stake to 100% over five years. The agreement is subject to the finalization of audited financial results and regulatory approvals.

Strategic Expansion into South Africa

Centrafin specializes in equipment rental and asset financing solutions, managing a R3 billion portfolio across various asset classes. This acquisition enables Capricorn Group to establish a significant presence in South Africa, the region’s largest economy, while introducing specialist asset finance and non-bank lending capabilities.

David Nuyoma, Group Chief Executive of Capricorn Group, described the move as a deliberate step in the group’s evolution. “The proposed deal allows Namibian-listed Capricorn Group to establish a material footprint in the region’s largest economy. The parties have agreed to an enterprise value of R788.3 million for Centrafin,” said Nuyoma. “Our ambition is to continue building a stronger, more diversified and increasingly regional financial services Group, and the proposed acquisition of Centrafin represents a deliberate and meaningful step forward in that journey.

South Africa is an important market in our growth ambitions, and Centrafin presents us with the opportunity to enter this market through an established operating financial services business. It will also introduce specialist asset finance and non-bank lending capabilities to the sectors in which we participate, further diversifying the interests of our Group.”

Preserving Centrafin’s Strengths

Capricorn Group recognizes and respects Centrafin’s key strengths, including its brand, experienced team, entrepreneurial culture, and customer relationships. The intention is to build on these qualities and support the business’s future growth. The Centrafin brand is expected to remain unchanged.

Jenny Gill, Managing Director of Centrafin, welcomed the proposed transaction, highlighting the strategic alignment between the two organizations. “With the support of our shareholder, we have taken considerable time and care in identifying the right long-term partner. Our objective was never simply to conclude a transaction, but to find an organization that shares our values, recognises the strength of our people and brand, and can help accelerate our vision of building a leading, multi-faceted finance business,” Gill said. “We believe Capricorn Group is the right partner to support the continued development of Centrafin, our employees, our customers and our broader stakeholder community.”

Next Steps and Regulatory Approvals

The binding offer does not signify completion of the transaction. Finalization depends on definitive agreements, approvals from the Bank of Namibia, the South African Competition Commission, and compliance with Namibia Securities Exchange requirements. All conditions must be met or waived by January 31, 2027, or a later agreed date.

For now, Centrafin’s existing teams and service channels remain the primary points of contact for customers and partners. Any confirmed changes to service agreements will be communicated through appropriate channels. Capricorn Group will keep the market informed of significant developments.