The Asset Management Corporation of Nigeria (AMCON) has sold its 34 per cent equity stake in Unity Bank Plc to Providus Bank, strengthening the ongoing merger deal between the two institutions.
The transaction, carried out as a crossed deal on the Nigerian Exchange Limited (NGX), involved four billion Unity Bank shares at N1.66 per share, amounting to over N6.5 billion. It was completed on September 25, a day before the court-ordered meeting of Unity Bank shareholders to decide on the merger.
According to sources, the sale was accepted by AMCON, while the temporary suspension of Unity Bank shares was lifted to enable the trade. By law, any sale of more than five per cent equity would have required prior approval of the Central Bank of Nigeria (CBN).
The merger is a major step for Providus Bank, which began operations in 2017 and has rapidly positioned itself as a digitally driven lender for SMEs and tech-savvy customers. The deal would allow Providus to scale into a national bank by leveraging Unity Bank’s 211-branch network across Nigeria.
If approved by shareholders, the scheme will offer Unity Bank investors a choice between a cash payout of N3.18 per share or a share swap, with 17 Unity Bank shares converting into 18 shares in the enlarged Providus Bank. Unity Bank’s assets, liabilities, and intellectual property would then be transferred to Providus, with Unity Bank dissolved as the surviving entity emerges.
The merger has already secured approvals from the CBN and the Securities and Exchange Commission (SEC), while the CBN provided a N700 billion support loan to recapitalise the new entity.
