Capricorn Group to acquire majority stake in South Africa’s Centrafin

Capricorn Group Limited has secured a binding offer to acquire an initial 81.6% stake in Centrafin, a South African specialist asset financing and equipment rental firm. The transaction, which values the business at an enterprise value of R788.3 million, is subject to the finalization of audited financial results.

The acquisition will be made from Fonzosys, a subsidiary of the Alviva Group. Capricorn Group holds an option to increase its ownership to 100% over a five-year period. This move is part of a strategic effort by the Namibia Securities Exchange-listed group to diversify its revenue and expand its footprint beyond its core operations in Namibia and Botswana into the South African market.

Centrafin currently manages an asset finance book of approximately R3 billion. Group Chief Executive David Nuyoma stated that the acquisition represents a meaningful step in the group’s evolution to become a more diversified and regional financial services provider.