Merger: AMCON Shares Bought By Existing Shareholder, Unity Bank Clarifies

Unity Bank Plc has clarified further regarding the sale of the Asset Management Corporation of Nigeria’s (AMCON) 34 per cent equity stake in the bank, confirming that the shares were acquired by an existing shareholder and not by Providus Bank Limited.

This development is said to signpost stakeholders’ confidence in the future of Unity Bank’s merger with Providus Bank, as the newly enlarged Providus Bank will boast an expansive branch network across Nigeria and a stronger capital adequacy ratio.

The chairman of Unity Bank, Hafiz Bashir, made this disclosure at a court-ordered shareholders’ meeting held at the weekend in Abeokuta. The clarification followed media reports suggesting that Providus Bank had purchased the stake in a N6.5 billion transaction involving over four billion Unity Bank shares.

Unity Bank stated that an existing investor was involved in the transaction executed on September 25, 2025, on the Nigerian Exchange Limited (NGX) shortly after the suspension on its shares was lifted.

“The shares were acquired by an existing shareholder of the bank, not by Providus Bank Limited, which is currently pursuing a merger with Unity Bank,” the statement read.

Unity Bank shareholders overwhelmingly approved the proposed merger with Providus Bank Limited at the Court-Ordered Meeting in Abeokuta. Of the 295 shareholders who participated, 293, representing 99.32 per cent of the total shareholding valued at N4.4 billion, voted in favour of the merger resolutions.

Under the terms of the Scheme of Merger, Unity Bank shareholders will be given two options. They may choose to receive a cash consideration of N3.18 per share, or opt for share allotment, where every 17 Unity Bank shares held will be exchanged for 18 ordinary shares of 50 kobo each in Providus Bank Limited, credited as fully paid.

Once completed, Unity Bank’s entire share capital will be cancelled, and the bank will be dissolved without winding up. Providus Bank Limited will retain its certificate of incorporation as the surviving and enlarged entity.

Unity Bank stated that “the merger marks a significant turning point in Nigeria’s banking landscape.

The enlarged institution will combine Unity Bank’s extensive national branch network with Providus Bank’s strengths in innovation, digital banking, and customer-centric services. Together, the banks will be positioned to serve households, small and medium enterprises, corporates, and government institutions more effectively.”

The new entity will commence operations with about 230 branches nationwide, giving it one of the industry’s most expansive physical networks. It will also launch with a strong capital adequacy ratio, ensuring competitiveness under Nigeria’s evolving banking reforms.

Speaking of these developments, Bashir noted, “the acquisition of AMCON’s 34 per cent stake by an existing shareholder further strengthens confidence in Unity Bank’s future. Alongside the merger with Providus Bank, this marks the beginning of a new chapter that will deliver greater value to shareholders, customers, and the Nigerian economy.”

Unity Bank stated that shareholders have also authorised its directors and solicitors to pursue all necessary court and regulatory approvals to ensure smooth merger implementation.