By Yakubu LAAH InvestAdvocate
Lagos (INVESTADVOCATE)-Second listed primary mortgage institution (PMI) on the Nigerian stock exchange (NSE) Aso Savings & Loans Plc Tuesday announced its intention to acquire Union Homes Savings and Loans Plc (UHSL)
The primary mortgage company in a notice to the NSE said as part of central bank Nigeria’s (CBN’s) approved restructuring exercise, Union Bank of Nigeria Plc (UBN) decided to sell Union Homes.
‘’After a bidding process, Aso Savings was selected as the preferred bidder in October, 2013,’’ the PMI said.
According to Aso Savings, to achieve this objective, it proceeded to execute a memorandum of understanding (MoU) with Union Bank under the supervision of the CBN.
The board of the primary mortgage firm has also approved the bank to implement a transaction implementation agreement (“TIA”) amongst Aso Savings, Union Homes Investment Nigeria Limited (“UHNL”), Union Homes Savings and Loans and Union Bank of Nigeria.
‘’The TIA was executed and submitted to CBN on December 31, 2013. UHNL is the Special Purpose Vehicle through which ASO will acquire the UBN divestment shares and recapitalised UHSL,’’ the company said.
Aso Savings affirmed that subsequent to the execution of the TIA, the CBN has issued a ‘No Objection Letter’ permitting ASO to proceed with the transaction. ‘’This is required to enable ASO proceed with the signing of a Share Purchase Agreement (“SPA”) between ASO and UBN Plc,’’ the PMI said.
On Monday at a media parley with business editor, Emeka Emuwa, group managing director (GMD) of Union Bank said before the end of 2014 or by within the first quarter of 2015, it would have completed its divestment from all its non-banking subsidiaries.
‘’As a clarification on subsidiaries, I had mentioned that we are divesting from all our subsidiaries with the exception of Union Bank UK, all our non-bank subsidiaries, we are divesting from.
We are well on track with regards that process, we are at various stages of completion; unfortunately I cannot share the details with you right; but as we complete them, we will share that and they would be public knowledge; but we have communicated to the public at large that we are divesting from all our non-banking subsidiaries with the exception of Union Bank UK,’’ he said.
