American Equity Firm Dangles US$8.5B on Nigerian Investments

By February 21, 2018 Investment News

Milost Global Inc-an American private equity firm is investing more than $8 billion or about N2.6 trillion on Nigerian investments as a demonstration of the New York-based firm’s confidence in the Nigerian economy. Among other investments in real estate and oil and gas services, the private equity firm is eyeing the acquisition of a major Nigerian bank.

Headquartered in New York City, Milost Global Inc is at the intersection of creative investing and value creation and has more than $25 billion in committed capital. Milost provides alternative capital, mezzanine finance, and alternative lending to a broad range of industries across the world including technology, transport, cannabis, education, distribution, mining, oil and gas, financial services, healthcare, pharmaceuticals, real estate, alternative energy and infrastructure development.

“Milost is very committed to the further advancement of the Nigerian economy with over one third of funds being committed to Nigerian investments,” Milost Global stated in an official statement announcing the arrival of the senior leadership of the firm in Nigeria.

Already, the senior leadership of the American private equity firm led by the Managing Partner and Chief Executive Officer, Mr Kim Freeman and Senior Partner & Chief Investment Officer Mr Solly Asibey are in Nigeria for a weeklong business meetings. The team is scheduled to leave Nigeria on Friday, February 23, 2018.

According to the American private equity firm, the purpose of its tour among other things in Nigeria is to meet up with the management of its portfolio companies such as Primewaterview Holding Nigeria Limited, Femab Properties Limited and Japaul Oil & Maritime Services Plc. Milost Global is also looking to conclude other current transactions including the acquisition of a large Nigerian bank, which was previously announced.

Japaul Oil & Maritime Services Plc yesterday confirmed that it has entered into a binding commitment with Milost Global Inc for injection of $350 million or N10.7 billion into the ailing Nigeria oil and gas services firm.

In a regulatory filing at the Nigerian Stock Exchange (NSE) signed by the acting managing group director of Japaul, Mr. Akin Oladapo, Japaul stated that the $350 million new capital would be split into $250 million new equity injection and $100 million convertible notes. Convertible notes can also be converted to equities, subject to the terms of the issuance.

Japaul noted that the new capital will help to reduce its precarious financial position.

“Japaul therefore seeks the understanding and cooperation of its stakeholders, as it will soon commence the transaction by going through all the laid down rules and regulations of Securities & Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE), because the commitment is still subject to regulatory approvals,” Japaul stated.

Source: The nation