Japaul shareholders suffer N376 million loss to Milost failed deal in a week


Shareholders of Japaul Oil & Maritime Services Plc have suffered N375.762 million loss to Milost Global Inc failed deal within a week.
The trouble started when the company announced it decision to pull out of the equity financing facility of $350 million with Milosz Global Inc. last week.
The company share which open May 6, at N0.46 kobo per share ended the week on May 11 at N0.40 kobo, representing a loss of N0.06 kobo per share with share outstanding of 6,262,701,716.
Japaul had in February 2018 signed an agreement with private equity firm Milost Global Inc. for $350 million in shares and loans for business expansion.
The company’s Chairman, Jegede Paul in a notice to the Nigerian Stock Exchange (NSE) in February said Milost will invest $250 million in equity and add another $100 million in convertible loans.
The capital was expected to fix Japaul grounded vessels, finance new contracts and expand into mining.
Analysts believed that Japaul share price may continue to decline as implication of failed deal which is not augur well with shareholders.
In his view, Chief Executive Officer of APT Securities and Funds Limited, Mallam Kasimu Kurfi said the implications is clear that the price of Japaul will continue to fall.
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.