The Securities and Exchange Commission (SEC) has said it is still gathering details on about $1bn share purchase crisis rocking Nigeria’s Unity Bank Plc and United States based Milost Global Inc.
The Nigerian Stock Exchange, (NSE) recently launched investigations into the ‘aborted” share purchase between Milost and Unity Bank and there are insinuations the Economic and Financial Crimes Commission (EFCC) may be involved in the investigations going forward.
The acting Director General Securities and Exchange Commission, Dr. Abdul Zubair, told our correspondent on the phone yesterday that SEC is still gathering details on the matter and will make it public in due course.
“we will give you the information when we have it” adding that the stock market is a confidence driven market and SEC will do a thorough investigation before making public statements on the matter.
Recall there were media reports quoting Milost Global Incorporated, a New York-based private equity firm, on March 26 in which it revealed it has cancelled its proposed investment in Unity Bank.
The statement released by the company was signed by Kim Freeman, Milost Chief Executive Officer.
Milost claimed it was approached in 2017 by Unity Bank’s chief executive officer and chief financial officer over the deal.
“Following the call, a desk top due diligence was conducted by Milost to its satisfaction. On September 4, 2017 a $1billion financing term sheet was fully executed by both Milost and Unity Bank,” the statement said.
It also said “The facility, a combo of equity and debt, was provided on the exciting understanding that Unity Bank would delist on the Nigerian Stock Exchange and move its listing to the US” adding that the “The signed term sheet was approved by the board of Unity Bank.”
In a swift reaction, Unity Bank had refuted claims it signed a deal with Milost insisting that all that was between the parties was negotiations and not a deal, as it were.
Unity Bank Plc in a statement said it didn’t enter into a 60 per cent holding structure or a $1bn investment contract with Milost Global Incorporated.
The bank’s statement posted on the Nigerian Stock Exchange (NSE) website also said it didn’t at any time agreed to move its listing from the NSE to the U.S.
It said of Milost Global Inc. that it “is one of the prospective investors introduced to the bank by a local entity called Mayo BV.”
“It is not unusual that this introduction and expression of interests would involve some level of preliminary discussions and exchange of non-binding documentary communication between the intending parties towards establishing mutual foundation on which the transaction contemplated would be initiated” the bank had explained.
It claimed that “The “Term Sheet” dated Sept. 4, 2017 was just a “proposal” submitted by Milost Global Inc. “for discussion purposes only and not a commitment” by the two parties.
“No definitive documentation governing the proposed financing was executed,” it said.
Unity Bank explained further that “The bank’s position is on the premise that a document prepared by Milost, which the bank acknowledged, merely contained the suggested terms and conditions on which Milost was planning to consider its possible participation in the capital funding of the bank.” (Daily Trust)
