Unity Bank denies $1b investment claim by US firm

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Unity Bank Plc

Unity Bank Plc yesterday dismissed a report claiming that a United States-based firm, Milost Global Inc, planned to invest $1 billion in the bank.

In a statement, the lender stated that it had not reached any agreement with Milost to warrant such a speculation.

The statement, signed by the bank’s Head, Corporate Communications, Matthew Obiazikwor, said: “We categorically dismiss media claims of any such deal and advise the public to disregard any information to the contrary.

“The bank hereby makes further clarifications regarding its on-going recapitalisation programmes to the effect that Unity Bank has not received commitment for investment of $1 billion from Milost. Unity Bank is in talks with a number of potential investors and has not concluded to pave way for commitment of an investment,” he said.

The bank has set realistic milestones on the recapitalisation programme and will update the public on the progress from time to time.

It was earlier reported that an American private equity firm, Milost Global Inc, is seeking to inject $1 billion to recapitalise Unity Bank.

According to a report, the U.S. firm plans an initial stake of about 30 per cent in Unity Bank in exchange for its first equity investment of $250 million.

Bloomberg quoted two sources believed to be aware of talks on the transactions, and reports that Milost plans to invest $700 million in equity and $300 million in five-year bonds that can be converted into shares in the lender.

It, however, claimed  the transaction is still subject to a due diligence as well as regulatory approvals, but the first part of the deal may be completed by next quarter.

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