Directors of the various companies Milost, a New York equity investment firm plans to invest in have in a statement blasted the Nigerian media for being utterly forward by criticizing the planned investment into their various troubled institutions.
They accused the nation’s media houses of displaying ignorance of the working of Milost, which they see as coming to save them from going under in their desire for fresh capital injection.
In the statement by Mandla J. Gawdiso, who designed the Milost Equity Subscription Agreement (MESA), a global investment instrument, a combination of debt and equity facility, Senator Sunday Fajinmi, chairman of Resort Savings and Loans, a beneficiary company expressed sadness “that a few grumbling, half educated individuals are against the recovery of Nigerian economy through resuscitation of dying businesses. The publication is just a promotion of corruption in some aspects of yellow journalism in our country that has propagated the popular PHD syndrome.
PHD is an acronym for the term: Pull-Him-Down, which refers to the act of persons trying to bring down a seemingly thriving person or firm.
Milost Global Inc. of USA, he continued, “has been verified to be a very credible investor in developing economies like Nigeria. Their track record which speaks for itself, attest only to their credibility. Their understanding of peculiarity of developing economies in Private Equity financing is amazing when compared to others who are the paymasters of the journalist, the author of the fake news.”
He therefore advised those opposed to the investment, who he described as “enemies of progress” to “look for better work to do as the Nigeria economy needs more friendly and understanding finance engineering organisations like Milost Global Inc. Be warned! as Nigeria belongs to all of us!”
Speaking in the same vein, Jegede Paul, founder and chairman of Japaul Oil Services wondered where the Nigerian media “got their variables that do not add up mathematically about Milost. They should have watched and see what happens about the issue of performance.
“This newspaper article against Milost has been wrongly perceived by the investing public and this is terribly affecting our share price on the Stock Exchange market. This is simply sad.”
He said the regulatory authorities were informed that Japaul signed the Milost Equity Subscription Agreement (MESA 1), and that the investor “has not asked for any upfront fees from us until disbursement takes place, even the facilitation fees to Palewater who are advisers to the transaction is technically agreed to be paid when we start to drawdown on the facility despite agreement signed. An escrow account agreement is being worked upon to trigger the drawdown on the facility.”
Chief Executive of Primewaterview, Harold Nzekwe, the mortgage firm recently acquired wholly by Milost, assured that his company “is stronger today because of the timely investment from Milost. Once you understand the structure of their financing you will realize that it is a win-win for all the parties. The Nigerian economy needs foreign direct investment from serious investors such as Milost in order for the economy to grow.”
Commenting, Kim Freeman, managing partner and chief executive of Milost said the company “wants to be instrumental in sustaining this growth. Our MESA fund is an innovative facility that allows a company to not only reach its true market value but also to achieve its vision of a larger more vertically diversified company through acquisitions and organic growth.”
Solly S. Asibey, Senior Partner & CIO of Milost, said the ingenuity and financial engineering behind the MESA, just as the Milost structure of engagement which makes it easy “to invest heavily in companies with high growth potential, whilst reducing our risk of investments through the checks and balances that are part and parcel of our framework of engagement.
“Our aim is to make investments in companies that will have a high impact within the vertical industry in which they operate, thus increasing the potential for the companies to be counted amongst the best in their industries globally. Our modus operandi has always been to invest in companies that will add value to the country and its citizens in terms of wealth and job creation, as well as the ability to contribute positively towards stepping up the economic transformation of the country. Our success is intertwined with the success of our investee companies; and from a corporate governance perspective, we subscribe to the rules and regulations of the Stock Exchange, Federal Reserve bank, and the SEC in terms of all our engagements.”
Meanwhile, another reported beneficiary of the Milost investment, Unity Bank, had on Tuesday denied media reports of the private equity from Milost Global will invest $1bn in the bank.
A statement by its Head, Corporate Communications, Matthew Obiazikwor categorically dismissed “media claims of any such deal and advice the public to disregard any information to the contrary”.
The statement however said the talks are still ongoing with a number of potential investors and that such has not reached the point for a commitment of an investment.
Bloomberg had on Monday reported Milost Global concluded plans to invest $1bn in the bank, out of which $250m was for immediate investment in the bank in exchange for a 30% equity stake. $750 million will then be invested over the next four years. The investment was also reported to be a mix of equity and convertible bonds.