Business
American firm offers $250m for majority stake in Resort Savings
Milost Global Inc, an American private equity firm, is bidding to acquire an overwhelming majority equity stake in ailing Nigerian mortgage firm, Resort Savings & Loans Plc, in a $250 million deal.
In a regulatory filing at the Nigerian Stock Exchange (NSE), the board of Resort Savings & Loans stated that Milost Global will provide $100 million, about N30.6 billion, as equity capital and $150 million, about N45.9 billion, as debt capital. The total market capitalisation of Resort Savings at the NSE is about N5.7 billion.
The board of Resort Savings stated that it had approved the proposed transaction at its meeting on February 26, 2018 while officials of Milost Global and Resort Savings have signed a commitment letter on the proposed transaction. With this, Milost Global will proceed with due diligence and other regulatory issues.
Read also: Nigeria’s economy still vulnerable —IMF
The board of Resort Savings indicated that the mortgage bank has executed the $250 million deal with Milost Global. The regulatory filing was signed by Managing Director, Resort Savings & Loans Plc, Mr Olayemi Rabiu and Chairman, Resort Savings & Loans, Senator Sunday Fajinmi.
“It is the belief of the board and management that the proposed investment will assist the bank in no small way in recapitalising the business, growing capacity and in becoming the leader in the mortgage finance industry. With this, we expect to be able to deliver impressive returns to our shareholders and satisfy the expectations of our other stakeholders in the very near future,” the board stated.
The board of Resort Savings stated that the transaction will be executed in phases through private placement to Milost Global and another local investor, which had earlier been identified and submitted to the Central Bank of Nigeria.
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