Capital Injection: Unity Bank Still Searching for New Investors

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The management of Unity Bank Plc thursday restated that it is still discussing with prospective investors in efforts to shore up its capital base for better performance, stressing that Milost Globla Incorporated has not invested in the bank.

Unity Bank Plc restated this in a notification to the Nigerian Stock Exchange (NSE) following recent reports that Milost has acquired 60 per cent stake in the bank.

According to the bank, pursuant to various regulators’ advice to the bank in recent times on the need to shore up its capital base, the bank with the mandate of its shareholders had engaged in series of discussions and engagement with prospective “value-plus investors”.

“Milost Global Inc. is one of the prospective investors introduced to the Bank by a local entity called Mayo BV. It is not unusual that this introduction and expression of interests would involve some level of preliminary discussions and exchange of nonbinding documentary communications between the intending parties towards establishing mutual foundation on which the transaction contemplated will be initiated,” it said.

Unity Bank explained that the “Term Sheet” dated September 4,2017 said to have been executed was a “proposal” submitted by Milost Global Inc. “for discussion purposes only and not a commitment” by the parties. No definitive documentation governing the proposed financing was executed.

The bank added that 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. There was no agreement whatsoever with Milost Global alluding to 60 per cent Unity Bank Plc shareholding. Also, there is no iota of truth in the allegation that the bank had executed a ”binding commitment agreement,” it said.

According to the bank, as stated in its previous correspondence, it has been involved in series of preliminary engagements with several prospective investors including Milost. But the bank did not execute a binding definitive agreement with Milost Global Inc. It is therefore a misnomer for anyone to claim that the bank issued a false statement relative to the nature of the communication between Milost and the bank,” it declared.