Ibeto Cement Company Limited, one of Nigeria’s cement manufacturing companies, has executed a binding MESA (Milost Equity Subscription Agreement) with Milost Global Inc., a United States (U.S) company.

The deal is for a $850 million financing out of which $500 million is in equity and $350 million debt.

This is even as the company has also started the process going public a reverse merger in the United States as efforts to become a publicly traded company.

The transaction was solely advised by Palewater Advisory Group Inc., and the going public transaction will allow Ibeto Cement to raise enough capital in the US public markets outside the Milost financing as well and put the company in the forefront of the cement industry in Africa.

News report monitored online indicates that the company’s chairman, Chief Cletus Ibeto, plans to grow the company beyond West Africa through the acquisition of other profitable cement businesses outside Nigeria within the next 12 months, this will be done at the back for the development of the two new plants.

He stated: “Our key strategic objective in the vast and extensive development of the cement business in Nigeria and the West African sub-region is to make cement affordable to all Nigerians and tiers of government in such a way that they should be able to develop modest homes for themselves and their families inclusive of road infrastructure.

“As far as I am concerned and with the knowledge I have and what I know in this business, the cement business is an investors’ haven especially in Nigeria and a much more profitable business than even crude oil where a lot of people think is the best place to invest. This probably explains why the few people in the business have deliberately created very strong barriers to entry into the industry for prospective investors.

“It is therefore my honest belief that this reverse merger will enable us to accomplish this objective. In the end and, in line with our strategic intent and objective, we are geared to be a world-class cement company in terms of quality, affordability, innovation, service, environment, safety, and corporate governance and also to be a part of building the country’s needed infrastructure all of which certainly guarantees good returns on investment for the stakeholders”, Ibeto added.

In his remarks, Managing Partner & CEO of Milost Global Inc., Kim Freeman, stated: “Ibeto Cement is an important investment for Milost in Nigeria and indeed Africa. We expect this transaction to provide a template for our other investments in Africa which will continue to enhance the value of the companies we invest in as well as value for our investors.”

Ibeto Cement Company Limited is one of the key players in the fast-growing cement industry in Nigeria and, by extension, Africa.

To increase its production and packaging capacity, the company is currently developing two cement plants in the country – one in Ebonyi State and one in Cross River State/Abia State. Each plant is a state-of-the-art 6,000 tonne per day plant.

It is expected that the latest transaction will enable the company to raise sufficient capital to increase its market share in Nigeria and the West African sub-region.

Milost Global Inc. is an American Private Equity firm that is headquartered in New York City, with more than $25 billion in committed capital.

Milost is at the intersection of creative investing and value creation. The company is also a provider of alternative capital, mezzanine finance, and alternative lending to a broad range of industries across the globe including Technology, Transport; and Cannabis.

Others are, Education, Distribution, Mining, Oil & Gas, Financial Services, Healthcare, Pharmaceuticals, Real Estate, Alternative Energy and Infrastructure Development.

Palewater Advisory Group is a multinational corporate and public affairs advisory firm with headquarters in New York. It specialises in cross-border and M&A transactions, financing, public affairs, political campaign capital raising and strategy.