Providus Bank is on track to become a publicly listed company on the Nigerian Exchange (NGX) following its merger with Unity Bank. The move will depend on the final shareholder structure of the enlarged entity.
According to the scheme of merger seen by BusinessDay, if the total number of shareholders in the combined bank exceeds 50, the institution will be re-registered as a public company limited by shares. This would effectively pave the way for a listing on the NGX.
The resolution was approved by Providus Bank shareholders at a court-ordered meeting held on September 26.
It states: “That if the total number of shareholders in the Enlarged Bank post-Merger exceeds 50, the Enlarged Bank be re-registered as a public company limited by shares.”
Read also: Providus/Unity Bank merger: Shareholders to get N3.18 per share
With over 79,000 Unity Bank shareholders, the combined shareholders in the enlarged bank would probably exceed 50.
Under the terms of the deal, Unity Bank shareholders have the option of receiving a cash payout of N3.18 per share or a share exchange of 18 Providus Bank shares for every 17 Unity Bank shares. If all shareholders opt for the share consideration, Providus Bank’s issued shares will rise from 41.8 billion shares to about 54.2 billion shares. And this enlarged bank will have a paid-up share capital of N27.1 billion.
This would leave Unity Bank shareholders with 22.8 percent of the merged entity, while existing Providus Bank shareholders would retain 77.2 percent.
Northwest Petroleum & Gas Limited, currently Providus Bank’s largest shareholder with 23.99 percent, would see its stake reduced to 18.5 percent after the merger. The oil and gas firm, founded by Winifred Akpani, the wife of Providus CEO Walter Akpani would, however, remain the dominant shareholder.
Vetiva Capital Management, with an 8.27 percent stake, would see its holding diluted to 6.38 percent. Meanwhile, the Asset Management Corporation of Nigeria (AMCON) sold a 34.22 percent stake in Unity Bank earlier in September to an undisclosed shareholder. That stake is expected to translate into a 7.8 percent holding in the enlarged bank. If the shareholder opts for shares instead of cash, they will become the second-largest shareholder in the new entity.
If completed, the merger will create Nigeria’s ninth-largest bank by assets, with a combined asset base of N4.49 trillion as of FY 2024. The new institution will operate 230 branches nationwide, integrating Providus Bank’s 19 branches with Unity Bank’s 211 branches.
Providus shareholders also voted to adopt the name Providus-Unity Bank for the merged entity. This signals a fresh identity as the bank prepares to compete more aggressively in Nigeria’s highly competitive banking sector.