National Wire About Nigerians, Nigerian Business and Other Stories
***Says Bank Issued False Statement
Tayo Olanipekun
Milost Global Inc. said it ended talks to provide $1 billion to Unity Bank Plc, following threats it received from Nigeria that the investment company will be forced out of the country if the deal continues, Bloomberg has reported.
The private-equity firm also told the media outlet on Monday that Unity Bank issued “a false statement which denied signing a binding commitment agreement.”
Milost had agreed to provide debt and equity on the understanding that Unity would terminate its Nigerian listing to trade its stock in the U.S., Bloomberg quoted a statement.
However, shortly after the news of the deal broke in Nigeria, Milost said it “started receiving threatening emails from a gentleman who says he is politically connected to the powers that could shut Milost out of Nigeria if Milost didn’t terminate the Unity Bank transaction.”
It added that negative articles started appearing in the local press until last week when it said Unity Bank also issued a “false statement which denied signing a binding commitment agreement,” even as Bloomberg said the Nigerian commercial bank did not respond to enquiry.
The term sheet of the deal was signed and approved by the board of Unity Bank, which needed the capital to build its buffers and to expand, the firm said.
Unity Bank said last April that it was in talks to sell its non-performing loans to avoid penalties after missing a deadline set by regulators on its recapitalization plans.
Milost, which has $25 billion in committed capital, however, will focus on its other investments in Nigeria, according to the Chief Executive Officer, Kim Freeman.
The firm will soon release $21 million to oil-services company Japaul Oil & Maritime Services Plc and another $10 million to Resort Savings & Loans plc, said a statement.
Milost buys shares of companies at a minimum 50 per cent premium to their market value, and then pegs the price over the next 90 days.
