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Japaul to get $350m funding from Milost

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Japaul Oil & Maritime Services Plc has signed an agreement with private equity firm Milost Global Inc. for $350 million in shares and loans for business expansion.

 

Milost according to a statement, will invest $250 million in equity and add another $100 million in convertible loans, Japaul Chairman Jegede Paul said in a notice to the Nigerian Stock Exchange (NSE)..
The fresh injection of capital will enable the company to fix grounded vessels, finance new contracts and expand into mining, he said.

 

Japaul’s oil and gas operations suffered a setback with the 2014 plunge in crude prices, which forced exploration and production companies to scale back their activities. As prices are recovering, the company wants to take advantage of new business opportunities in the industry. The company plans to be able to absorb future oil and gas price shocks by diversifying into mining, Paul said.

 

“Japaul therefore seeks the understanding and cooperation of its stakeholders, as it will soon commence the transaction by going through all the laid down rules and regulations of Securities & Exchange Commission (SEC) and The Nigerian Stock Exchange (NSE), because the commitment is still subject to regulatory approvals. The Company shall be communicating this financing commitment to the Shareholders as necessary,” he said.

The stock rose 6 per cent in Wednesday’s trading at the NSE, the most since June 25, 2014, to close at 37 kobo.

 

Milost Global, founded by Mandla J Gwandiso in 2015 is an American Private Equity firm that is headquartered in New York City, with more than $25 billion in committed capital. Milost is also a provider of alternative capital, mezzanine finance and alternative lending to a broad range of industries across the globe including Technology, Transport, Cannabis, Education, Distribution, Mining, Oil & Gas, Financial Services, Healthcare, Pharmaceuticals, Real Estate, Alternative Energy and Infrastructure Development.

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