Camey Injects N4.3bn in Resort Savings, Acquires Majority Stake

By November 29, 2019 Investment News

In a bid to play a catalytic role in the nation’s mortgage industry, Camey and Rock Business Consulting Limited has injected N4.3 billion to acquire the majority stake in Resort Savings and Loans Plc.

The deal which has transferred all the 8,670,267,596 unissued ordinary shares of Resort Savings and Loans Plc to Camey is expected to stimulate the operations of the primary mortgage (PMI) through the fresh capital injection.

In an interview in Abuja, the Chief Executive Officer, Camey and Rock, Mr. Peter Adejoh, said the board and management of Resort Savings and Loans Plc had at a meeting on

October 24, 2019, approved the deal, which gives his organisation 43.35 per cent interest in the mortgage firm.

With over 13,000 shareholders, the current authorised share capital of the PMI is 20 billion units of shares amounting to N10 billion at N0.50k per share.

The investment, he said, was aimed at taking the bank to the next level in mortgage banking services in Nigeria and beyond.

He added: “The bank has executed a Share Purchase Agreement and the completion of the transaction is subject to regulatory approvals.

“With this, we expect to deliver impressive returns to our shareholders and satisfy the expectations of customers and other stakeholders in the nearest future.”

Adejoh, disclosed that Resort Savings and Loans Plc was poised to address the key challenges in the Nigerian housing sector, including funding and pricing.

“When you look at the minimum wage today, it is a herculean task that will take a civil servant a very long time to put such money together to buy a house.

“However, with the optimisation of the mortgage industry, the CBN, over the years, and in recent times, has reviewed the minimum capitalisation for mortgage banks.

“They have broken them into categories of state, regional and national. The reason for doing that is build capacity so they will be able to fund mortgages.

“The board and management of the bank believe that this strategic investment will change the face of the Resort Savings and Loans and efficiently reposition it for the benefit of customers, stakeholders and the Nigerian mortgage and financial services space.

“With this, we expect to deliver impressive returns to our shareholders and satisfy the expectations of customers and other stakeholders in the nearest future,” he said.

Source: ThisDay