By Dipo Olowookere
The business relationship between an American private equity firm, Milost, and that of a Nigerian company, Turner Wright Limited (TWL), has been terminated.
Milost had planned to acquire the indigenous manufacturer of veterinary pharmaceuticals for $150 million, but due to some reasons, the deal could not see the light of the day.
This is not the first time Milost is having a failed business dealings with Nigerian company. Its much-talked about investment in Unity Bank and others are still very fresh in the memory of observers in the Nigerian financial market.
In a report by The Nation, Turner Wright (TWL) Limited terminated its deal with Milost Global Incorporated and its associated companies because the foreign firms failed to honour the terms of the investment agreement.
The associated companies are Big Time Holdings Incorporated (BTHI) and Williamsville Smith Management Limited (WSML).
Milost had proposed to acquire 70 percent equity in TWL in a deal valued at $150 million with disbursements expected to be concluded within four years. The investment initially had WSML as the Special Purpose Vehicle (SPV) for the transaction but this failed to materilaise.
The deal was subsequently vested in BTHI, one of Milost’s publicly trading entities in the over-the-counter (OTC) market of the New York Stock Exchange (NYSE) through which it planned to raise capital and fund the transaction.
BTHI, like WSML before it, then proceeded to have an agreement with Turner Wright which would cede 70 per cent of the Nigerian company to BTHI through a share exchange upon funding and disbursement of agreed capital.
Chairman/Chief Executive Officer, Turner Wright Limited, Dr Tunde Lawal, said the indigenous firm decided to terminate the agreement with effect from May 14, 2019 because of non-performance on the part of both Milost and BTHI.
According to him, the objective of the share exchange agreement had not materialised by dint of non-performance on the part of both parties and as such shares were never exchanged between Turner Wright and BTHI.
“This brings to a close the relationship between Turner Wright Limited and BTHI,” Mr Lawal said.
With this development, analysts noted that Turner Wright’s fortunes have returned to status quo without encumbrance.
In May 2018, TWL had executed an agreement with the New York-based Milost Global Inc involving $50 million equity and $100 million convertible note.
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