ISSUES ON MERGER/ACQUISITION OF UNION HOMES SAVINGS AND LOANS PLC AND ASO SAVINGS AND LOANS PLC .
During the Banking consolidation policy of the Central Bank of Nigeria under AlhajiLamidoSanusi as the Governor, it was directed that the big banks should embrace the” HOLDING COMPANY” model or an outright sale of its subsidiary to another Organization . Union Homes as a subsidiary of Union Bank went through the process of embracing different organizations that bided to take over the Bank
It was through this process, midwifed by the Central Bank of Nigeria herself (the Apex and Regulatory body) that a Merger /Integration /Acquisition template was agreed with Union Bank for Aso Savings and Loans Plc. to take charge of Union Homes. The Merger/Integration /Acquisition required the parties to fulfill certain conditions which were explicitly spelt out in the Transaction Implementation Agreement.
The Central Bank of Nigeria as the regulator stipulates that the Transaction Implementation Agreement (T.IA.) be consummated within 90 days whereby both parties will fulfill this financial obligations in the spirit of the document (see attached END DATE on page 5 of the T.I.A). Regrettably, many years have rolled by and we still do not know where we are.
The same Transaction Implementation Agreement specifically stated that Aso Savings and Loans PLC must inject N5b (Five Billion Naira ) into Union Homes Savings and Loans PLC as a purchase consideration fee to Union Homes Saving and Loan PLC (working capital) first before take over or do anything with the organization ( See attached INVESTMENT AMOUNT on page 5 of the T.I.A). As staffers and shareholders of the company, we observed a statement in the implementation of the T. I.A in the past eight years without any evident of the consummation of the said N5B (Five Billion Naira) or the transfer of ownership needed to return Union Homes Savings and Loan Plc to full banking operation.
More importantly, the Central Bank of Nigeria committed in the T.I.A. to give a loan of N12b to Aso Savings and Loans PLC to boost the operations of Union Homes Savings and Loans PLC, as a condition to the consummation of the transfer of Union Homes Saving and Loan PLc( see attached CBN LOAN on page 5 of the T.I.A). As hardworking citizens of the country who pay tax and shareholders, we are concerned about the status of our institution and the execution of the various responsibilities needed to drive the bank into full scale operations and provide services to numerous customers who are willing to access its services across the nation.
Please we are appealing to CBN to provide us with the status Audit on the ownership of Union Homes Savings and Loan PLC , the consummation of the N5b (Five Billion Naira ) initial deposit to purchase Bank and the release of the N12b ( Twelve Billion Naira ) financial accommodation by Central Bank of Nigeria (CBN).it is our opinion that if these issues have not been resolved, the merger/ acquisition Is of no effect and practically impossible.
The prolong impasse has brought untold hardship to innocent customers, our staffers and the Bank Shareholders..
Consequently our request stresses on the bailout of Union Homes Savings and Loans PLC to enable it contribute appropriately to the Gross Domestic Product of the nation.This demonstrate your care for the affairs of Union Homes Savings and Loans PLC and your future plans for her .