Merger: AMCON Moves 34% Stake In Unity Bank To Providus

Asset Management Corporation of Nigeria (AMCON) yesterday diverted its 34 per cent equity involvement successful Unity Bank Plc to Providus Bank, marking a important milestone successful the merger betwixt the 2 banks.

The transaction, worthy N6.5 billion, involves 4 cardinal Unity Bank shares sold astatine N1.66 per share. This improvement sets the signifier for Unity Bank’s afloat integration into Providus Bank, pending shareholder support and regulatory sign-offs.

The merger aims to make a robust fiscal instauration with a beardown retail beingness and integer capabilities, poised to thrust maturation and stableness successful Nigeria’s banking sector.

A root noted that the bid was acceptable to AMCON, the merchantability of thing supra 5 per cent shares and supra required the anterior support of the Central Bank of Nigeria; and the suspension of Unity Bank shares lifted to facilitate this trade.

Recall that connected 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 volition determine connected September 26, 2025 whether to o.k. the strategy of merger. The result of the gathering volition find the destiny of the lender.

If sanctioned, the transaction volition spot Unity Bank’s full stock superior cancelled, efficaciously dissolving the institution. This way, Providus Bank Limited’s certificate of incorporation volition go that of the enlarged entity. The merger volition harvester the assets, liabilities, and undertakings of some banks into a azygous fiscal institution.

Per the tribunal bid by Hon. Justice D.I. Dipeolu, Unity Bank shareholders volition determine whether to o.k. a currency information of N3.18 per stock oregon opt for a stock swap nether which each 17 Unity Bank shares person into 18 shares successful the enlarged Providus Bank.

Unity Bank was past valued astatine N19.4 cardinal earlier its shares were suspended successful May 2024. The banal had been level astatine N1.51 earlier the suspension, making the N3.18 connection a 110 per cent premium. As of 2024, Unity Bank’s unaudited full assets stood astatine N414 billion, with lawsuit deposits of N402 billion.

Providus Bank, by comparison, had grown its plus basal from N373 cardinal successful 2020 to N2.56 trillion successful 2024. Its lawsuit deposits reached N1.5 trillion, portion nett aft taxation stood astatine N33 billion, somewhat down from N43.5 cardinal successful 2023.