Cement market to deepen as Ibeto seals $850mn Milost deal to expand operations
Contrary to analysts permutations, leading cement giant controlling the Eastern market in Nigeria, Ibeto Cement has signed a $850 million (N306 billion) deal with US-based private equity firm, Milost Global Inc.
It would be recalled that Japaul Oil and Maritime services had backed out of a planned $350 million (N126 billion) deal with Milost on grounds of “numerous red flags associated with the proposed equity injection”.
The cement company said it signed the $850 million (N306 billion) deal with the US-based private equity firm, Milost Global Inc., via an executed binding Milost Equity Subscription Agreement (MESA).
According to arrangements, out of the amount, $500 million is in equity and $350 million debt. As part of the deal, Ibeto is said to have started the process of going public in a reverse merger in the United States in efforts to become a publicly traded company.
The deal was on Friday May, 25, personally consummated by the Nigerian Dollar Billionaire, Chief Cletus Ibeto (Owner of Ibeto Cement) for the acquisition of a publicly traded Company that he will use to reverse the assets of his cement business in America.
The statement averred that “the final acquisition and definitive agreements have already been executed”.
Analysts say the deal will among other things, raise the market visibility of Ibeto Cement, and further contribute to the lowering of market price of the product in Nigeria.
Cement price in Nigeria seems to have defiled the conspiracy theory used to drive backward integration many years ago on the premise that prices will crash to N1,000 per bag of 50kg which never happened till date.
