Ibeto Cement Company Limited (“Ibeto”), a Nigerian cement company has executed a binding MESA (Milost Equity Subscription Agreement) with Milost Global Inc. for a $850 million financing, of which $500 million is in equity and $350 million debt. 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 Nigerian Dollar Billionaire Chief Cletus Ibeto will personally consummate the acquisition of a publicly traded Company the he will used to reverse the assets of his cement business in America, the final acquisition and definitive agreements have already been executed. 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. Chief 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.
Dr Cletus M. Ibeto, Chairman of Ibeto Cement Company Limited, 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.”
Solly S. Asibey, Senior Partner & CIO of Milost Global Inc., stated, “International equity, coupled with the diversification of our investment portfolio is key to our strategy for growth in emerging markets. Excellence, innovation, unparalleled strategy, industry knowledge, favourable IRR and strong leadership epitomises the partnership between Milost and Chief Cletus Ibeto. This is a great investment opportunity for Milost, and the financial engineering behind the structuring of the transaction will catapult Ibeto Cement to exceptional heights.”
Kim Freeman, Managing Partner & CEO of Milost Global Inc., also 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, a privately held company incorporated under Nigerian law, is one of the most dominant players in the fast-growing cement industry in Nigeria and, by extension, Africa. To increase its production and packaging capacity, the Ibeto Cement Company Limited is currently developing two cement plants in Nigeria: 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 sitting on abundant deposits of quality limestone at both ends.
Ibeto Cement Company Limited is owned by the industrial Nigerian billionaire – Dr. Cletus Madubugwu Ibeto, CON. Dr Ibeto is a world-class business leader and entrepreneur who has built successful companies/industries in Nigeria and beyond. Through Ibeto Cement Company Limited, Dr Ibeto has seriously impacted the cement market in Nigeria. This transaction will enable Ibeto Cement Company Limited to raise sufficient capital to dominate the industry in Nigeria and the West African sub region as a whole.