Capital Seven, a Botswana based private equity firm, has announced its plans to acquire a 75% stake in Trust Holdings, a financial services group in Zimbabwe.

The transaction is subject to valuation, which will be done on the group’s assets.

Capital Seven said it will inject $12.5m into Trust Holdings, diluting current shareholders to 25%.

The PE firm has also agreed to meet related costs of the transaction.

The costs include legal, valuation and publicity, among others, which will earn them an extra 15%.

Trust Holdings (TH) is an investment holding company that engages on the provision of investment services.

It focuses in financial services, insurance, real estate, export agriculture and export manufacturing.

It services include Trust Financial, Agriculture and Properties.

The company is headquartered in Harare, Zimbabwe.

William Nyemba, Trust Holdings CEO, said that Capital Seven has already started paying for some of the costs in good faith.

He said that part of the $12.5m would be used to pay off TH’s minorities or shareholders, who want to opt out completely.

Nyemba said the transaction would safeguard TH’s assets.

Trust Holdings’s prime asset, Trust Banking Corporation, is currently under liquidation and some of its assets were auctioned to pay off creditors.

The Botswana-domiciled PE firm had initially wanted to acquire the group for $25m, but later revised the offer to $12.5m after the bank was closed.

Capital Seven had also bought into TH’s idea of venturing into merchant banking.

“The investor is keen on merchant banking and property development. We are looking forward to working with them to develop these two areas,” Nyemba said.