ASOSAVINGS Announces Proposed Acquisition of Union Homes Savings & Loans Plc

Proshare

March 18, 2014 12.30PM/NSE

Aso Savings & Loans Plc has notified The Nigerian Stock Exchange of its intention to acquire Union Homes Savings & Loans (UHSL) Plc.

 

As part of Central Bank Nigeria’s (CBN) approved restructuring exercise, Union Bank of Nigeria Plc decided to sell UHSL Plc. After a bidding process, Aso Savings was selected as the preferred bidder in October, 2013.

 

Towards achieving this objective, Aso Savings proceeded to execute a Memorandum of Understanding (MOU) with UBN Plc under the supervision of the CBN.

The Board of ASO has also approved the bank to implement a Transaction Implementation Agreement (“TIA”) amongst ASO, Union Homes Investment Nigeria Limited (“UHNL”), UHSL and UBN Plc. 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.

 

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.  

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