Unity Bank Plc is concluding talks with foreign investors over acquisition deal

Unity Bank Plc says it is currently concluding talks with prospective foreign investors to recapitalise.

Nigeria's tier-2 bank, Unity Bank Plc, says it is currently concluding talks with prospective foreign investors to recapitalise after missing a regulatory deadline last year.

Oluwatomi Somefun, Unity Bank Managing Director, disclosed this on Tuesday, November 6, 2018, in Lagos.

Somefun stated that the bank will soon finalise a memorandum of understanding (MoU) that will lead to the anticipated capital injection in the commercial bank.

She said one of the parties in the deal is the second largest infrastructure finance institution in Asia without providing further details.

“All I can assure you is that this time around, it is very clear and it is not Milost. All I can say is that one of the parties is the second largest infrastructure finance institution in Asia.

“Even though we have closed the process, some of the parties we had engaged before are saying they want to invest because the bank is now looking good.”

Tomi Somefun, Unity Bank MD ece-auto-gen

Earlier in the year, a $1 billion investment deal between Global Inc., a New York-based private equity firm and Unity bank Plc failed over what the equity firm termed 'threats' from well-connected politicians.

The managing director's media parley came barely a week after the Nigerian stock market authority placed the bank on suspension over the delay in submission of its financial statements.

Mohammed Shehu, Unity Bank's secretary had explained that the delay was occasioned by certain corporate actions, including ongoing discussions with the bank’s prospective investors.

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The bank has now submitted its audited financial statements for 2017 financial year and 2018 quarterly unaudited financial statements up to September 30, 2018, and suspension lifted.

Unity Bank's financial book

In its nine months financial report released last Friday, November 2, 2018, the bank showed that loan impairment dropped to zero from N16.47 billion at the end of December 31st 2017. The bank's revenue also dipped by 76.1% to N585.8.02 million from N2.45 billion in the corresponding year.