A privately-owned Nigerian producer of building materials, Ibeto Cement Co. Ltd, has signed a deal to getÂ $850Â million in financing fromÂ Milost Global Inc, a New York-based private equity firm.
According to Bloomberg, Milost will provideÂ $500Â million in equity andÂ $350Â million as debt to the Nigerian cement maker, Milost said in a statement on its website, citing a â€œbindingâ€ agreement by the two parties.
Calls for comment didnâ€™t go through on numbers listed on Ibetoâ€™s website for its corporate office in the southeastern city of Nnewi. There was no immediate response to an emailed message.
The company operates a cement-bagging facility in the southern city of Port Harcourt and is currently rehabilitating Nigercem, a former state-owned plant in the southeastern town of Nkalagu, which it acquired.
The announcement of a deal with Ibeto is coming weeks after Nigerian company, Japaul Oil & Maritime Services Plc, said it wasÂ pulling outÂ of aÂ $350Â million funding deal with the U.S. firm, citing what it called â€œred flagsâ€.
Milost in MarchÂ ended talksÂ to provideÂ $1Â billion to Nigeriaâ€™sÂ Unity BankÂ Plc, alleging threats by some suspected shareholders.
The lender denied entering a binding agreement with the private equity firm, saying talks were only preliminary.