BusinessDay 28 Feb 2018
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PRIVATEEQUITY<br />
& FUNDRAISING<br />
Wednesday <strong>28</strong> <strong>Feb</strong>ruary <strong>2018</strong><br />
Japual extends winning streak as<br />
stock makes biggest gain in 4yrs<br />
LOLADE AKINMURELE<br />
The share price of<br />
Japaul Oil & Maritime<br />
Services Plc, a<br />
Nigerian oil-services<br />
company, has rallied<br />
since it disclosed an agreement<br />
with private equity firm Milost<br />
Global Inc. for $350 million<br />
(N90 billion using N360/$) in<br />
shares and loans for business<br />
expansion.<br />
Japaul rose 9.52 percent to<br />
N0.46 Monday, according to<br />
Bloomberg data, its biggest gain<br />
since June 2014.<br />
Milost will invest $250 million<br />
in equity and add another $100<br />
million in convertible loans, Japaul<br />
Chairman, Jegede Paul, told<br />
reporters last week. The fresh<br />
injection of capital will enable<br />
the company to fix grounded<br />
vessels, finance new contracts<br />
and expand into mining, he said.<br />
Considering Japaul’s market<br />
capitalisation is just N2.8 billion,<br />
the N90 billion credit line offered<br />
by Milost has raised a few eyebrows.<br />
Two calls seeking clarification<br />
from Akinloye Oladapo,<br />
WORD OF<br />
THE WEEK<br />
Japaul’s managing director, on<br />
Monday were not answered.<br />
Japaul’s oil and gas operations<br />
suffered a setback with the 2014<br />
plunge in crude prices, which<br />
forced exploration and production<br />
companies to scale back<br />
their activities.<br />
As prices are recovering, the<br />
company wants to take advan-<br />
C002D5556<br />
tage of new business opportunities<br />
in the industry. The company<br />
plans to be able to absorb<br />
future oil and gas price shocks by<br />
diversifying into mining.<br />
ROUND:<br />
A ROUND a financing event whereby professional investors such as venture capitalists invest additional<br />
funds in a company that was previously financed by founders. The “A” is from Series “A” Preferred stock.<br />
After the “A” round of financing; subsequent rounds are called “B”, “C”, and so on.<br />
BUSINESS DAY<br />
Companies&Markets<br />
Nigeria’s largest maize<br />
farm attracts 20%<br />
equity investment<br />
JOSEPHINE OKOJIE<br />
Through a firm called Babban<br />
Gona, Kola Masha the MIT<br />
trained former technical assistant<br />
to an ex-agric minister is now the<br />
largest aggregator of maize in Nigeria.<br />
The firm which currently works<br />
with 18,000 farmers in Katsina, Kaduna<br />
and Kano, has attracted a 20<br />
percent equity investment from the<br />
Bill and Melinda Gates foundation for<br />
expansion, <strong>BusinessDay</strong> has gathered.<br />
The investment which is aimed at<br />
improving farmers income will help<br />
Babban Gona upscale its number of<br />
smallholder farmers from 18,000 to<br />
40,000 before the end of <strong>2018</strong> and<br />
boost the country’s local maize production.<br />
“The investment from the Bill<br />
and Melinda Gates foundation has<br />
been instrumental in catalysing our<br />
investments and our growth and we<br />
expect this investment will enable us<br />
reach our target of 1 million farmers<br />
by 2025,” Masha, managing director,<br />
Babban Gona told <strong>BusinessDay</strong>.<br />
“The investment is a key part that<br />
has enabled us to grow by six folds<br />
and also increase our number of<br />
farmers by six folds. We have been<br />
very fortunate to have a great partner<br />
like the Gates foundation with us,”<br />
Masha said.<br />
Goodwell acquire minority<br />
stake in Microfinance<br />
Bank Oradian<br />
DAVID IBEMERE<br />
Goodwell Investments has<br />
acquired a minority equity<br />
stake in Oradian, one of the<br />
world’s fastest growing providers<br />
of digital solutions for financial<br />
institutions in frontier markets.<br />
Oradian is based in Zagreb<br />
(Croatia) with offices in Lagos (Nigeria)<br />
and Manila (Philippines).<br />
The amount of the deal was not<br />
disclosed.<br />
The investment will allow Oradian<br />
to grow its business across<br />
Africa and strengthen its commercial<br />
teams.<br />
The investment will be made<br />
from Goodwell’s UMUNTHU<br />
fund, which participates in the inclusive<br />
economy through the provision<br />
of risk capital and hands-on<br />
support to local entrepreneurs and<br />
institutions in Sub-Saharan Africa.<br />
Oradian provides microfinance<br />
institutions (MFIs) with Instafin,<br />
a cloud-based core banking platform<br />
to reach more clients in some<br />
of the most remote, hard-to-reach<br />
communities. Since signing its first<br />
customer in northern Nigeria in<br />
2013, the company has expanded<br />
to more than fifty financial institutions<br />
in seven countries, including<br />
Ghana serving one million endclients.<br />
Goodwell Investments acquisition<br />
of a minority equity stake in<br />
the company, will allow Oradian to<br />
grow its business across Africa and<br />
strengthen its commercial teams.<br />
<strong>BusinessDay</strong> PRIVATE EQUITY & FUNDRAISING (Team lead: LOLADE AKINMURELE - Analysts: MICHEAL ANI, DIPO OLADEHINDE, ENDURANCE OKAFOR, DAVID IBEMERE ... Graphics: DAVID OGAR )<br />
Businessday’s Private Equity and Fundraising section is a weekly publication that provides in-depth analysis on private equity trends and tracks deal activity in Nigeria.<br />
Email the PE & F team loladeakinmurele@gmail.com<br />
Continues on page 34<br />
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