Asset Management Corporation of Nigeria (AMCON) yesterday diverted its 34 per cent equity stake in Unity Bank Plc to Providus Bank, marking a significant milestone in the merger between the two banks.
The transaction, worth N6.5 billion, involves 4 billion Unity Bank shares sold at N1.66 per share. This development sets the stage for Unity Bank’s full integration into Providus Bank, pending shareholder approval and regulatory sign-offs.
The merger aims to create a robust financial institution with a strong retail presence and digital capabilities, poised to drive growth and stability in Nigeria’s banking sector.
A source noted that the bid was acceptable to AMCON, the sale of anything above five per cent shares and above required the prior approval of the Central Bank of Nigeria; and the suspension of Unity Bank shares lifted to facilitate this trade.
Recall that on August 6, 2024, the Central Bank of Nigeria approved the merger of Unity Bank and Providus Bank.
According to a court-ordered notice, Unity Bank shareholders will decide on September 26, 2025 whether to approve the scheme of merger. The outcome of the meeting will determine the fate of the lender.
If sanctioned, the transaction will see Unity Bank’s entire share capital cancelled, effectively dissolving the institution. This way, Providus Bank Limited’s certificate of incorporation will become that of the enlarged entity. The merger will combine the assets, liabilities, and undertakings of both banks into a single financial institution.
Per the court order by Hon. Justice D.I. Dipeolu, Unity Bank shareholders will decide whether to approve a cash consideration of N3.18 per share or opt for a share swap under which every 17 Unity Bank shares convert into 18 shares in the enlarged Providus Bank.
Unity Bank was last valued at N19.4 billion before its shares were suspended in May 2024. The stock had been flat at N1.51 before the suspension, making the N3.18 offer a 110 per cent premium. As of 2024, Unity Bank’s unaudited total assets stood at N414 billion, with customer deposits of N402 billion.
Providus Bank, by comparison, had grown its asset base from N373 billion in 2020 to N2.56 trillion in 2024. Its customer deposits reached N1.5 trillion, while profit after tax stood at N33 billion, slightly down from N43.5 billion in 2023.
