Investor Acquires 43.35% Stake in Resort Savings

By Modupe Gbadeyanka

The board of Resort Savings and Loans Plc has secured a fresh capital injection of up to N4.3 billion from an investor, who now controls about 43.35 percent equity stake in the company.

Not too long ago, the investor, Camey and Rock Business Consulting Limited, offered to purchase all the unissued 8,670,267,596 ordinary shares of the bank and this proposal was approved.

According to the CEO of Camey and Rock, Mr Peter Adejoh, the decision to invest in financial institution was to “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.”

He said to reduce housing deficit in the country, the bank would come up with affordable houses that would make it easy for low-income earners to own their houses.

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

Business Post reports that Resort Savings currently has over 13,000 shareholders and has the highest customer base in the mortgage banking sector with over 70,000 active accounts spread across Nigeria.

The deal, which was done through a Share Purchase Agreement, is subject to regulatory approvals.

From the calculations done by Business Post, Camey and Rock must have paid about 50 kobo for each of the company’s unissued shares to acquire the 43.35 percent controlling stake.

This is 150 percent higher than the last closing price of the company’s share price on the Nigerian Stock Exchange (NSE), 20 kobo per unit.

Resort Savings currently has shares outstanding of 11,329,732,404 units and a market capitalisation of N2.3 billion, which could rise to N6.6 billion when the transaction is approved by regulators, who are mainly the Securities and Exchange Commission (SEC), NSE and the Central Bank of Nigeria (CBN).

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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