Modupe Gbadeyanka
By Modupe Gbadeyanka
On Monday, the Securities and Exchange Commission (SEC) disclosed that it was still looking into the botched equity deal between Unity Bank and Milost Global Incorporated.
Recall that earlier this year, Business Post reported that Milost Global, an American private equity company, was planning to invest in a “large Nigerian bank.”
Some days after our article, it was confirmed that the “large Nigerian bank” Milost was looking to invest in was Unity Bank.
Both parties also later confirmed that talks were ongoing concerning about $1 billion investment in the financial institution.
This drove up the value of Unity Bank Plc shares at the Nigerian Stock Exchange (NSE).
However, on March 26, Milost Global announced that it was pulling out of the deal because of a report by a local newspaper casting doubts on its credibility.
Milost Global had disclosed in a statement issued by its chief executive, Mr Kim Freeman, that the Nigerian had agreed to delist from the local bourse and move to the stock exchange in the United States and wondered the reason for the negative report it was getting in Nigeria.
But three days later, Unity Bank responded by denying signing any 60 percent holding structure or $1 billion investment deal with Milost Global.
It also said there was no time it agreed delisting from the NSE.
Speaking on the issue on Monday in Lagos, the Acting Head of Corporate Communications at SEC, Mrs Efe Ebelo, said the capital market regulator was still investigating the matter.
According to her, anyone found wanting would be sanctioned appropriately in line with laid down regulations.
“The matter is still under investigation; it has not been swept under carpet as some would have thought.
“We would want to assure the investing public that whoever is found wanting in the failed deal would be punished accordingly,” Mrs Ebelo said.
