Resort Savings and Loans Plc has attributed the delay in Milost Global injecting funds to a technical suspension placed on its shares.
The company made this known in a notice it sent to the Nigerian Stock Exchange (NSE). According to the release, the bank had obtained a binding and first drawdown agreement of $10 million, with a provision of immediate release of $1 million. Resort had in March this year announced a $250 million financing agreement with Milost Global.
“The release of the fund is being delayed by the inability of the bank to value its shares through market forces. The stock is currently on technical suspension.”
In order to expedite the lifting of the suspension and the recapitalisation, the company has taken the following steps:
- The bank’s financial statements for 2015, 2016, and 2017 are being audited.
- Appointment of parties to the issue in view.
- Execution of Escrow Agent Agreement with Milost Global Inc and the Escrow Agent in Nigeria.
- Forwarding of Audited Financial statements to the Central Bank of Nigeria (CBN) before being transmitted to stakeholders.
Will Milost be third lucky?
The private equity firm has so far been unable to seal a definitive agreement with two companies listed on the exchange.
Plans to invest $1 billion in Unity bank, were terminated due to what it termed threats. The Bank denied it had any binding definitive agreement with Milost Global and stated that both parties were only engaged in a preliminary discussion. The Securities and Exchange Commission (SEC) has since begun investigations into the aborted deal.
Japaul Oil and Maritime Plc then pulled out of its agreement with the company. Acting Managing Director, Akin Oladapo, disclosed that the company took the decision in view of the several red flags associated with the planned equity injection.
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.