Finbond Group Limited (JSE:FGL) entered into an agreement to acquire 49% stake in Trustco Finance (Pty) Ltd. from Trustco Group Holdings Limited (NMSE:TUC) for R$60 million on June 2, 2023. The salient terms of the Transaction are as follows: The purchase consideration payable by Finbond will be R60 million for 49% of the shares in Trustco Finance. 50% of the purchase consideration set out above will be payable in cash on the signature of the definitive agreement on or before 31 July 2023.

The remaining 50% of the purchase consideration will be payable when the Balance Sheet of Trustco Finance as at 31 August 2023 has been restructured to simplify the structure of Trustco Finance and to reflect the intention of the parties and has been audited without any qualification or modification. The Transaction remains subject to the following conditions precedent: Finbond?s Board and Investment Committee Approval; Trustco Finance?s Board and Investment Committee approval; All regulatory approval as required; and Finalisation of a satisfactory due diligence investigation. The anticipated effective date of the transaction will be August 1, 2023.

As of August 31, 2023, the anticipated effective date has been updated from September 1, 2023 to October 1, 2023.