In responding to the alleged termination of a $1 billion investment by Milost Global Inc, Unity Bank said it is still in talks with the company and other investors to raise capital and there is no concluded agreement.
This was made known to the investing public in a statement signed by the company secretary of Unity Bank, Mohammed Shehu on the Nigerian Stock Exchange (NSE), yesterday.
The bank stated that Unity Bank has reviewed the various publications in some media touching the purported investment of $1 billion in Unity Bank Plc by Milost Global Inc.
According to the bank, pursuant to various Regulators’ advice to the bank in recent times on the need to shore up its capital base, Unity Bank with the mandate of its shareholders had engaged in series of discussions and engagement with prospective “value-plus investors”.
“All through these engagements, the Bank has been properly guided by the extant regulations concerning capital raising and equally made the process open to all prospective investors.”
Unity Bank explained that Milost Global Inc. is one of the prospective investors introduced to the bank by a local entity called Mayo BV, saying that it is not unusual that this introduction and expression of interests would involve some level of preliminary discussions and exchange of non-binding documentary communications between the intending parties towards establishing mutual foundation on which the transaction contemplated will be initiated.
The bank explained further that “the ‘Term Sheet’ dated September 4, 2017 said to have been executed was a proposal submitted by Milost Global and for discussion purposes only and not a commitment by the parties.”
The bank stated that no definitive documentation governing the proposed financing was executed.
The bank also said “it is in relation to the preliminary discussions that courtesy visits were exchanged between representatives of Milost and the bank in 2017 and early 2018.
“The bank’s managing director/CEO was in New York in October 2017 for other engagements and decided to visit Milost and verify the firm’s address as well as put a face to the officers of Milost that have been engaging the bank via telephone and emails.
“A brief meeting was held and discussions were around the dynamics of Milost proposal to Unity Bank Plc, and socialisation of the policies and regulations around equity investment in Nigeria.”
Unity Bank emphasised that it did not at any time suggest or agree to move its listing from the NSE to the USA as falsely reported in the media.