United, Spring Merge to Form United Mortgage Bank Plc

Ojo M. Maduekwe

Following the directive of the Central Bank of Nigeria (CBN) that state mortgage banks shall maintain a share capital base of N2.5 billion, the duo of United Mortgage Bank Limited and Spring Mortgage Bank Plc have merged to form the United Mortgage Bank Plc.

At the scheme of merger signing ceremony that was held at the Victoria Island, Lagos office of the United Mortgage Bank Limited and for the Spring Mortgage Bank Plc, at the Eko Hotel, Lagos, shareholders of each company, through voting in person or by proxy, agreed to the merger.

During voting, shareholders of United Mortgage Bank who were present and voted, represented 85.21 per cent total number of the company’s shareholders, while the shareholders of the Spring Mortgage Bank Plc present, voted unanimously in favour of the merger.

The merger exercise, which was presided over by the Managing Director and Chief Executive Officer of United Mortgage Bank Limited, Mr. Walter Akpani, had representa- tives of the regulatory agencies such as the Security and Exchange Commission and the CBN in attendance.

Speaking to journalists at the close of the ceremony, Akpani said that “with the strategy in place, focus and human capital that comprise the United Mortgage Bank Plc, we should be able to meet our shareholders expectations.”

Acknowledging that the period was challenging, Akpani said, “I believe we have the right attitude, products and efficient services that will give us the leverage we want to be able to satisfy the shareholder’s needs.”

According to Akpani, the manner of voting by both shareholders of the companies were an indication of the confidence that was placed on the United Mortgage Bank Limited and him as MD/CEO of the company.

“To me, it means that the shareholders have imposed enormous responsibility on us; they believe that the management of the combined entity have the ability to turn around the fortunes of the two institutions.”