Milost Global Inc. has alleged threats to shut it out of the country if it continues with the planned talks to inject $1 billion into Nigeria’s Unity Bank Plc.
According to Bloomberg, Milost started receiving threatening emails from an individual 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.
The private equity firm noted that negative articles started appearing in the local press and last week, Unity issued a “false statement which denied signing a binding commitment agreement.
Recall that Bloomberg had earlier reported that the New York-based private-equity firm will invest $1 billion in the tier two lender, Unity Bank. The firm had in February disclosed that it was in discussions with the Central Bank of Nigeria (CBN) regarding investment in a tier two bank.
However, Unity Bank has denied the planned injection from Milost Global but confirmed that talks with investors were still ongoing. According to Unity Bank’s Head, Corporate Communications, Mr. Matthew Obiazikwor noted that the bank has not concluded talks with any investor to pave way for any commitment of an investment.
News continues after this ad
In his words:
“we categorically dismiss media claims of any such deal and advice the public to disregard any information to the contrary.Unity Bank is in talks with a number of potential investors and has not concluded to pave way for a commitment of an investment.”
Milost has of recent being active in the Nigerian market, in January, Milost Global acquired Primewaterview Holdings Nigeria Limited for $1 billion. Primewaterview is a diversified holding company with a portfolio of Real Estate, Oil & Gas, Quarry Mining, Healthcare and Power
In February, Japaul Oil also announced it had signed a $350 million financing agreement with Milos. The funds will be channelled towards its mining projects. Earlier this month, Resort Holdings had announced it had secured $350 million investment from Milost Global.
News continues after this ad
Unity Bank currently trades at ₦1.29 in today’s trading session on the Nigerian Stock Exchange. The bank’s results for the 9 months ended September 2017 show the bank had gross earnings of ₦65 billion and a profit before tax of ₦2.7 billion. Tier 2 banks in the country are in a race to boost their Capital Adequacy Ratio CAR after a drop in oil prices and tough macroeconomics factors.
Milost Global, founded by Mandla J Gwandiso in 2015 is an American Private Equity firm that is headquartered in New York City, with more than $25 billion in committed capital. The firm has investments across several industries including Technology, Transport, Cannabis, Education, Distribution, Mining, Oil & Gas, Financial Services, Healthcare, Pharmaceuticals, Real Estate, Alternative Energy and Infrastructure Development.