The Asset Management Corporation of Nigeria (AMCON) has transferred its 34 per cent equity stake in Unity Bank Plc to Providus Bank.
The deal, valued at N6.5 billion, covers 4 billion Unity Bank shares sold at N1.66 per share.
The transaction paves the way for Unity Bank’s full integration into Providus Bank, subject to shareholder approval and regulatory clearance.
The merger is designed to establish a stronger financial institution with an extensive retail network and advanced digital capacity, positioned to drive growth and stability in Nigeria’s banking sector.
A source disclosed that the bid was acceptable to AMCON, noting that “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 are scheduled to decide on September 26, 2025 whether to approve the scheme of merger. The resolution of that meeting will determine the bank’s future.
If sanctioned, the transaction will result in the cancellation of Unity Bank’s entire share capital, effectively dissolving the institution. In that case, Providus Bank Limited’s certificate of incorporation will serve as that of the enlarged entity, combining the assets, liabilities, and undertakings of both banks into a single financial institution.
Per the order of Hon. Justice D.I. Dipeolu, Unity Bank shareholders will choose between a cash consideration of N3.18 per share or a share swap, where every 17 Unity Bank shares convert into 18 shares in the expanded Providus Bank.
Unity Bank was last valued at N19.4 billion before its shares were suspended in May 2024. The stock had traded flat at N1.51 before the suspension, making the N3.18 offer a 110 per cent premium. As of 2024, the bank’s unaudited total assets stood at N414 billion, with customer deposits of N402 billion.
Providus Bank, on the other hand, expanded 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 was N33 billion, down slightly from N43.5 billion in 2023.