Japaul Oil Plans Mining Investment In Nigeria With $350M Milost Loan

Yemisi Izuora/Agency Report

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

Milost will invest $250 million in equity and add another $100 million in convertible loans, Japaul Chairman Jegede Paul said in a phone interview on Tuesday from Lagos, Nigeria’s commercial capital. The fresh injection of capital will enable the company to fix grounded vessels, finance new contracts and expand into mining, he said.

Oriental News Nigeria reported that Milost Global Inc., a New York based private equity firm, announced a Nigerian visit by its senior leadership team headed by Managing Partner & CEO, Mr Kim Freeman and Senior Partner & Chief Investment Officer Mr Solly S. Asibey to firm up its Investment decisions that will also see conclusion of its bank acquisition deal.

The team was accompanied by Isilo Capital Partners’ team that is led by CEO Tiny Diswai. Both teams will be in Nigeria for the whole week. After leaving Nigeria tomorrow Friday February 23, they will be headed for East Africa where they will spend another 4 weeks before heading to Southern Africa for 2 weeks, whereas Milost leaders will be back in New York on May 1.

The purpose of the Milost African tour among other things in Nigeria is to meet up with the management of its portfolio companies such as, Primewaterview Holding Nigeria Limited, Femab Properties Limited, Japaul Oil & Maritime Services Plc and the conclusion of other current transactions among those includes the closing of a large Nigerian bank acquisition which was previously announced. 

Milost is very committed to the further advancement of the Nigerian economy with over one third of funds being committed to Nigerian investments. The Milost Teams will be also be meeting with government officials that include the Central Bank of Nigeria, Nigerian Stock Exchange, The Ooni of Ife among others. The teams are hosted by the Ooni of Ife’s elder brother, Prince Adetunji Ogunwusi of Ile-Ife Kingdom, Harold Nzekwe the CEO of Primewaterview Holdings Nigeria Limited, Israel Ovirih, CEO of Banklink Nigeria Limited, and Femi Bello, CEO of Mayo BV Limited.

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.

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