Stallion Home Savings & Loan Limited and Mutual Alliance Savings & loans Limited have signed a Memorandum of Understanding on the plan to merge their businesses.
A statement on Thursday stated that the proposed business combination between the two players in the mortgage banking sector was part of efforts aimed at beating the recapitalisation deadline of the Central Bank of Nigeria.
The statement added that the planned merger would ultimately give birth to a mega national mortgage bank.
It added that to actualise the proposal, a four-member steering committee, two each from both primary mortgage banks, had been inaugurated and saddled with the responsibility to put together necessary documentations as prescribed by the recapitalisation guidelines for submission to the CBN for approval.
According to the statement, the committee is expected to conclude its assignment and submit the report by September 30, 2013.
The statement quoted the Managing Director/Chief Executive Officer, Stallion Home Savings and Loan Limited, Mr. Johnson Akhidenor, as saying that at completion, the bank would have an increased capital base to be able to compete favourably in the industry.
“In pursuant of the merger the emerging entity will be a mega national mortgage bank with over N5bn capital base capable of efficiently and effectively tapping into the huge business opportunities in the estate sector,” he said.
The Director of Mutual Alliance Savings & Loans Limited, Mr. James Taylor, said the combination would enable the two firms to be stronger in the task of helping to address the housing challenges of Nigerians.
“With the south-south and Abuja strength of Mutual Alliance Saving & 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,” he said.