As an investment banker, I understand the role of a private equity infusion into a business. So all these stories that have emerged from this wahala are not novel.
I have heard that the foreign equity firm had infused about $18m into the business and had taken a controlling stake. You see the problem with our people is just stupidity and ego-driven madness.
How for the life of me will you take money in forex, expose yourself to currency volatility, earn naira and then buy back forex at a funny price to pay back on an equity-based transaction? Wait o, you have not factored in double-digit inflation, the inelasticity of your pricing and all other Nigerian factors plus leakages and high cost of running a business that the government will be chasing you with multiple and triple-layered taxation. If it is not an ego-driven gambit, I don’t know what else is.
So today, the people who I hear have 95% of the company want to appoint their managing director and we are crying crocodile tears. The statements that I have seen allegedly issued by madam are at best funny. They are like the things your wife will use to abuse you when you refuse to pay for her latest aso ebi – ‘are you a man, shebi you slept with the maid 40 years ago and I forgave you’. So the woman is shouting that the newly appointed MD begged her to carry his anti-malaria drugs. Mbok, how that one concern wetin dey for ground beats my imagination o.
I think mummy should just go back home and retain her position on the board and allow the people to manage the thing and collect back their money according to the terms of the agreement that was signed. This is where I have a problem with the Nigerian Stock Exchange. They are not doing enough, oga Oscar. Nigerians should be able to raise these funds on your platform very easily. It is not to be wearing suit and tie and be gallivanting all over the place giving highfalutin speeches. Practically engage the markets, we can raise all these equity funds by involving Nigerians.
After all, the Big Brother fans raise millions in minutes for their favourites who were kicked out. That is on the side. But seriously, our promoters should look towards the stock exchange and forget about the ego – na me get am – and issue shares and raise the funds. Mbok what is $18m that is making mummy want to run naked into the Lagos lagoon? Bitter lessons learnt.