Business

SEC reacts to Milost, Unity Bank aborted deal

Published

8 years ago

April 6, 2018

By Odunewu Segun

The Securities and Exchange Commission (SEC) has finally opened up on the termination of the $1bn investment agreement between private equity firm, Milost Global and in one of Nigeria’s tier two banks, Unity Bank last week.

Speaking recently on the matter, Acting Director-General of the Commission stated that it was currently investigating the chain of events that led to the termination of the agreement, and would come with a position.

Milost Global in February, signified its intentions to conclude its acquisition of a large Nigerian bank following talks with the Central Bank of Nigeria (CBN). Reports then confirmed the bank in question was Unity. Unity bank then issued a statement denying any transaction had been concluded.

The firm last week released a statement terminating a planned $1 billion investment in tier two lender Unity bank. The firm took this decision due to this what it termed threat emails from an unnamed individual.

Unity bank then released a rebuttal issued a follow up statement insisting it had no agreement with Milost, hence the term termination did not apply.

Milost has been fairly active in the Nigerian space in recent times. In January, Milost in conjunction with, Isilo Capital Partners (its African subsidiary) acquired Primewaterview Holdings Nigeria Limited, at $1 billion.

In December last year, it provided a $5 million facility to Primewaterview, for various projects.

In February, it signed a $350 million financing agreement with Japaul Oil and Maritime Services. In March, Resort Savings and Loans announced the private equity firm would invest $250 million comprising $100 million as equity capital and $150 million as debt.