A New York, United States-based private equity company, Milost Global Inc., has terminated its funding partnership deal with Unity Bank Plc.
It was learnt that the US firm had, last August, received a request from Unity Bank for funding partnership, as part of the bank’s growth plans.
The company on September 4, 2017, entered into agreement for a $1 billion financing term, after due diligence was done.
Part of the pact was that Unity Bank would delist on the Nigerian Stock Exchange (NSE) and move its listing to the USA. It was also agreed that Milost would take a controlling 60 per cent of Unity Bank, with the retention of the same board members and management for continuity of operations.
Sources revealed that the deal went awry when Bloomberg reported the transaction, without Milost’s reaction following its policy not to engage journalists.
According to Milost, after Bloomberg’s report, it began to receive emails over the transaction, including allegation of violating SEC regulations.
Following the controversies, Milost decided to terminate the transaction but promised to continue doing business in Nigeria.
According to Kim Freeman, Managing Partner and CEO of Milost, “Milost will continue to do business in Nigeria despite any negative publicity and this will ultimately benefit Nigeria and Africa.”
Milost Global Inc. said it would soon be releasing the first and second drawdowns to Japaul Oil & Maritime Services Plc totaling $21 million in a combo of equity and debt, as part of its going business in Nigeria.
“Another first and second draw down proceeds of $10 million will be released to Resort Savings and Loans Plc and the funds will be released to both companies within the month of April,” the company said.
The hiring of one of Nigeria’s law firms to represent it in the lawsuit against a newspaper over publications on the Unity Bank transaction was also revealed.
“Milost wishes to state that it will fight tooth and nail to ensure that this kind of behaviour doesn’t affect other investors that wish to help grow the Nigerian and West African economies at large,” the statement said.
Milost Global Inc. is headquartered in New York City, with more than $25 billion in committed capital. The company also provides alternative capital, mezzanine finance and alternative lending to a broad range of industries across the world.