The Asset Management Corporation of Nigeria (AMCON) has sold its 34 per cent equity stake in Unity Bank Plc to Providus Bank, marking a significant step toward the merger of both institutions.
The transaction, concluded at the Nigerian Exchange (NGX) through the negotiated window, involved 4 billion ordinary shares of Unity Bank at ₦1.66 per share, valued at ₦6.5 billion. The sale came a day before the court-ordered meeting for Unity Bank shareholders to vote on the merger scheme.
Market observers noted that the deal’s execution indicated regulatory approvals had been secured, as transactions exceeding five per cent of shareholding require clearance from the Central Bank of Nigeria (CBN). NGX also lifted its suspension on Unity Bank’s shares to facilitate the trade.
Analysts said the merger positions Providus Bank, which commenced operations in 2017, for a national presence by integrating Unity Bank’s 211-branch network across all 36 states and the FCT. The move is expected to accelerate Providus Bank’s growth beyond its digital niche, deepening retail operations and expanding customer reach.
“The combination immediately provides Providus with scale in retail banking, strengthens its SME pipeline, and supports key sectors such as agriculture, mining, ecommerce, and hospitality,” analysts added.
Shareholders of Unity Bank will vote on whether to accept a cash payout of ₦3.18 per share or swap 17 Unity Bank shares for 18 in the enlarged Providus Bank. Upon approval, Unity Bank’s assets, liabilities, and obligations will transfer to Providus, with the latter continuing as the surviving entity.
The CBN and the Securities and Exchange Commission (SEC) had approved the merger in August 2024, while the apex bank backed the deal with a ₦700 billion recapitalisation loan to stabilise the new entity.
