The plans by Deap Capital Management and Trust Plc (Deap), to transform into a merchant bank have received a boost as Discoverpoint Holdings, a private equity holding company based in New York, United States, is set to inject $150 million capital into the Nigerian firm.
Deap, an investment management and financial services group, was the first firm to be listed under the Other Financial Institutions Sector (non-banking, non-insurance financial services company) of the Nigerian Stock Exchange(NSE).
However, the company is transforming into a merchant bank, following the new licensing regime of the Central Bank of Nigeria (CBN) which eliminated universal banking. And in order to realise the transformation, Deap and Discoverpoint have signed a memorandum of understanding(MoU).
A statement from Deap said that both firms would set up a joint venture partnership structure which would will give rise to Deap Global Holdings Limited.
The holding company, the statement explained, would own and operate a merchant bank and other financial services companies. The statement disclosed that Discoverpoint would inject $150 million in capital into the holding company, restructure and transform Deap into a merchant bank.
The statement quoted the Chief Executive Officer(CEO) of Discoverpoint, Mr. Kris Oribabor, as saying, “with the holding company structure in place, we are looking to position Deap as a global financial services institution with access to the world largest capital markets.â€ÂÂ
On his part, the CEO of Deap, Mr. Emmanuel Ugboh, said “since we formed Deap in 2002, we have strived to be recognised as an innovator within the Nigerian investment management sector. We are pleased to receive the support from Discoverpoint on our global expansion plans and look forward to growing the company and the Deap brand with a focus on creating maximum shareholder value and strong return for our investors.â€ÂÂ
Deap currently owns interest in a portfolio of companies within the financial services sector which include: Resort Securities and Trust Limited, a stockbroking firm; DVCF Oil & Gas Plc, an energy focused venture capital company; and Resort Savings & Loans Plc, a mortgage bank listed on the NSE.
On the other hand, Discoverpoint Holdings a Pan Africa focused private equity holding company focused on oil & gas, metals & mining, financial services and infrastructure.
Discoverpoint has decades of financial and operational experience, broad industry knowledge and a strong network of global relationships. Through its integrated operating platforms Discoverpoint works in partnership with companies and investors to deliver innovative capital solutions.
SOURCE: Thisday/ By Goddy Egene