Recapitalisation: Stallion Home, Mutual Alliance Plan Merger

As operators in the primary mortgage banking industry move to beat the December 31, 2013 recapitalisation deadline by the Central Bank of Nigeria (CBN), Stallion Homes Savings and Loans Limited and Mutual Alliance Savings & Loans Limited have commenced merger talks.

 The two mortgage banks recently signed a Memorandum of Understanding (MoU) on the proposed business combinations, which would ultimately give birth to a mega national mortgage bank.

To actualise the proposal, a four-member steering committee was formed, comprising two each from both firms. The committee is saddled with the responsibility to put together necessary documentations as prescribed by the recapitalisation guidelines for submission to the CBN for approval.

Speaking on the development, Managing Director/Chief Executive Officer of Stallion Homes Savings, Mr. Johnson Akhidenor, said the emerging entity would be a mega national mortgage bank with over N5 billion capital base capable of efficiently and effectively tapping into the huge business opportunities in the estate sector.

 

On his part, Mr. James Taylor of Mutual Alliance Savings & Loans Limited said the combination will enable the two primary mortgage banks be stronger and more virile in the task of helping to address the housing challenges of Nigerians.

 

“With the South-south and Abuja strength of Mutual Alliance Savings & Loans Limited and Stallion Home Savings & Loan Limited’s pedigree in the south-west, North as well as Abuja, the emerging bank would definitely redefine mortgage banking in Nigeria,” Taylor said.

CBN has extended the deadline for primary mortgage banks (PMBs) in Nigeria to shore up their shareholders’ funds to N5billion from April 30 to December 31, 2013. The central bank had said the extension would afford all affected PMBs sufficient time to exercise any of the options for capital raising, business combination and downscaling.

 

Source: ThisDayLive