Japaul pulls out of $350 million Milost deal

 

Japaul Oil and Gas have announced it will pull out of $350 million equity financing facility with Milost Global Inc.
A statement signed by the company’s acting Managing Director, Akin Oladapo, noted that in view of the several red flags associated with the planned equity injection, the company has decided to pull out of the deal.
Japaul had early this year entered an agreement with Milost Global Inc for a financing facility of $350 million under the Mesa Fund 1, a global opportunity fund that is managed by Milost Global Inc.
The financing agreement was arranged and negotiated by Palewater Advisory Group Inc in New York and Banklink Africa Limited in Nigeria.
During the signing of the agreement, Paul Jegede, CEO, Japaul Oil & Maritime Services Limited, noted that the new financing is an opportunity for the company to optimize the potentialities in all areas of its businesses especially in areas of mining which the Japaul Group has diversified into.
However, revelations by Businessday and other media outlets regarding the integrity of the deal has now resulted in a rethink by the company.
Ironically, the CEO of the Japaul had admonished Businessday for criticizing the deal calling them out for “purports lies”.
The hammer for Japaul must have come from SEC who may have waded in after the controversy surrounding the deal appeared to be getting out of hand.
Unity Bank and Aso Savings had also backed off on the deal.