The Asset Management Corporation of Nigeria (AMCON) has sold its 34 percent equity stake in Unity Bank Plc to Providus Bank, in a landmark transaction that further cements the ongoing merger between both banks.
The deal, executed yesterday through the negotiated window of the Nigerian Exchange (NGX), involved three transactions covering 4 billion ordinary shares of Unity Bank at N1.66 per share, amounting to N6.5 billion.
The transaction, which represents 34 percent of Unity Bank’s issued share capital, came just a day before a court-ordered meeting where shareholders are expected to approve the merger scheme.
Market analysts noted that the deal’s completion reflected AMCON’s acceptance of Providus Bank’s bid and suggested that the necessary regulatory approvals had already been secured. Any transaction above 5 percent requires clearance from the Central Bank of Nigeria (CBN). In addition, the NGX lifted its suspension on Unity Bank’s shares, specifically to enable the trade.
Over the past decade, Providus Bank has built a reputation as a fast-growing, digitally driven lender with strong appeal among tech-savvy customers and SMEs. Analysts believe the merger will transform Providus from a niche player into a full-fledged national bank, leveraging Unity Bank’s 211-branch network across Nigeria’s 36 states and the FCT.
The combined entity is expected to strengthen Providus Bank’s retail presence, diversify its customer base, and provide immediate scale in retail banking. The merger also adds a robust pipeline of SME lending opportunities across key sectors such as agriculture, mining, e-commerce, hospitality, and entertainment.
Providus Bank has stated that it plans to integrate its advanced technology platforms into Unity Bank’s branch operations, improving efficiency and customer service. The merger, it added, will create new value across retail, SME, and digital banking channels.
At today’s court-ordered meeting, Unity Bank shareholders will vote on the merger scheme. They will have the option of receiving a cash payout of N3.18 per share or exchanging every 17 Unity Bank shares for 18 shares in the enlarged Providus Bank.
If approved, all Unity Bank assets, liabilities, intellectual property, and ongoing legal matters will be transferred to Providus, while Unity Bank will be dissolved, leaving Providus as the surviving entity.
The merger already received approval from both the CBN and the Securities and Exchange Commission (SEC) in August 2024. To support the deal, the CBN also provided a N700 billion lifeline loan to recapitalize the enlarged bank.
