INCOMPACTIBLE MERGER/ACQUISITION AGREEMENT BETWEEN UNION HOMES SAVINGS AND LOANS PLC AND ASO SAVINGS AND LOANS PLC

In 2013, Central Bank of Nigeria (CBN) conducted Merger/Acquisition arrangement and agreement between Union Homes Savings and Loans Plc and Aso Savings and Loans Pic when Union Bank of Nigeria Plc chose to sell off all its subsidiaries in line with the Banking Policy of CBN at that period.

During the merger/acquisition arrangement, many viable and healthy organizations with the financial capacity and capability that were required to recapitalize Union Homes bidded for Union Homes Savings and Loans Plc but were all rejected. However and unfortunately, CBN which was aware of the financial position and operations of Aso Savings and Loans Plc, that she was not capable of merging/acquiring Union Homes Savings and Loans Plc, still ceded Union Homes to Aso Savings and Loans Pic's. Needless to say that the whole arrangement was dead on arrival as Aso Savings and Loans Plc inability to fulfill just one aspect of the agreement has proved the Shareholders, Depositors and investors positions right over the decision of CBN.

In the Transaction Implementation Agreement (TIA) approved by CBN between Union Homes Savings and Loans Plc and Aso Savings and Loans Plc, it was spelt out clearly that each party will fulfill her obligation as contained in the document of agreement and that the consummation of the merger/acquisition process must be done within 90 days or the agreement becomes null and void. The 90 days have expired, and its over 7 years now that Aso Savings and Loans Plc has been operating as the owner of Union Homes Savings and Loans Pic and CBN has refused to apply or implement the terms of agreement on Aso Savings and Loans Plc with respect to failing to consummate the merger process within 90 days.

In the TIA, it was stated that Aso Savings and Loans Pic must inject N5billion as a purchase consideration fee (working capital) into Union Homes Savings and Loans Ple first before take over or do anything in it. For this past 7 years, Aso Savings and Loans Plc has not injected or invested a dime in Union Homes Savings and Loans Plc but receives, controls and utilizes every funds that UHSL PLC recovers from debtors or raises from sales of UHSL Assets anyhow she likes without CBN challenging and checkmating her excesses on the bank.

CBN on her part, committed to give N12billion 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 Savings and Loans Plc but till date CBN has failed to make the fund available for the intended purpose, thereby contributing grossly to the failure of the consummation of the Transaction Implementation Agreement.

The stripping of the bank (UHSL) assets by Aso Plc cannot be overemphasized. A bank of 27 branches with almost all the building belonging to the bank has barely 3 branches resident in the bank's buildings as at today. The bank's lands including the Wumba Land, Kuje land (Part of which has been converted and built as Aso Meadows Estate) and many others have been sold (all of which amounted to billions of naira) but no provision has been made from these moneys or invested into UHSL Pic to start of its core business.

Shockingly, a wholesome N1.6billion was recovered by the management of UHSL Plc recently but the said money has not been deployed to the bank's operations as Aso Plc determines the pace and operations of what happens in UHSL PLC.

Regrettably, CBN's attention has been drawn many times to these atrocities being carried out in UHSL PLC by Aso PLC but CBN has not done anything about IT till date which gives the impression that she is aware and in support of the atrocities.

As concerned citizens, shareholders and depositors of the bank, we are concerned about the states of the bank and the discharging of her various responsibilities which are needed to move the bank into full scale operations and provide services to the numerous customers who are waiting to access its services across the nation. But considering the above, it is evident that Aso PLC does not have the financial capacities and willingness to consummate the merger arrangement since:

(a) She has been unable to consummate merger/acquisition process within the given 90 days.

(b) She has been unable to provide the NSbillion working capital for the past 7 years. (c) Assets stripping and capital flight are the order in the bank

(d) No interest of reviving Union Homes Plc has been demonstrated at any time by Aso

Savings and Loans Plc.

The prolong impasse has brought untold hardship to innocent customers, shareholders, depositors and staffers. Debt recovery has been the only job of the staff of the organization as Aso Savings and Loans Plc has nothing to offer since 2013 and regrettably, much has been recovered that would have kick-start operations of the bank but to no avail.

In the circumstance therefore, we appeal to CBN to dissolve this unworkable merger/acquisition arrangement between Union Homes Savings and Loans Plc and Aso Savings and Loans Pic so that Union Homes Savings and Loans Plc on her own or CBN will look for capable investors who will not only inject the required capital into the bank to start operations but also enough funds that can bring returns to shareholders and depositors in no distant time.

Our request stresses on the bail out of Union Homes Savings and Loans Pic to enable her contribute appropriately to the gross domestic product of the nation. Besides, hundreds of shareholders and depositors have died without accessing their funds in Union Homes and those who are alive but are on life support cannot afford their routine drugs, food, rents, children's school fees etc. because of non-availability of funds in the bank. Your immediate care in the affairs of Union Homes Savings and Loans Plc and the demonstration of your future plan for her is higher solicited.

We look forward to your immediate and positive response. Thanks for your cooperation.

Will this help us

Thanks for this detailed information. I've learnt so much from this.

My mum had an investment with Union Homes due to her undying love for Union Bank (old school tinz ) and based on the advice of her accounts officer. Unfortunately, by the time I became aware of the problems she had while trying to withdraw part of her funds, ASO had taken over.

All efforts to recover the deposit has proved abortive though they never denied that she has an account with them. It was always stories of how they're planning to revive the place. A visit to their Ikorodu road office at Onipanu tells a different story.

The wicked will never go unpniished, God will punished all involved in the predicament of Union Homes

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