Unity Bank Sets Record Straight on AMCON Stake Sale Amid Providus Merger

In a significant development for Nigeria’s banking sector, Unity Bank Plc has clarified misconceptions surrounding the recent sale of a 34% equity stake previously held by the Asset Management Corporation of Nigeria (AMCON). Contrary to earlier reports, the shares were acquired by an existing shareholder, not Providus Bank Limited, as the two institutions move toward a landmark merger.

Hafiz Mohammed Bashir, Chairman of Unity Bank Plc, addressed the issue during a court-ordered shareholders’ meeting, emphasizing that the transaction reflects strong investor confidence in the bank’s future. “The acquisition of AMCON’s 34% stake by an existing shareholder bolsters faith in Unity Bank’s prospects,” Bashir stated. “Coupled with the merger with Providus Bank, this paves the way for a transformative chapter delivering enhanced value to shareholders, customers, and Nigeria’s economy.”

The clarification follows media speculation that Providus Bank had purchased the stake in a ₦6.5 billion deal involving over four billion Unity Bank shares. Unity Bank confirmed that the transaction, executed on the Nigerian Exchange Limited (NGX) after the lifting of a share trading suspension, was conducted by an existing investor, dispelling rumors of Providus Bank’s involvement.

The merger, approved overwhelmingly by Unity Bank shareholders, marks a pivotal moment for Nigeria’s financial landscape. Of the 295 shareholders in attendance, 293—representing 99.32% of the bank’s ₦4.4 billion shareholding—voted in favor of the merger resolutions. Under the merger terms, shareholders can opt for a cash payment of ₦3.18 per share or a share swap, exchanging every 17 Unity Bank shares for 18 fully paid ordinary shares of ₦0.50 each in Providus Bank. Upon completion, Unity Bank’s share capital will be canceled, and the institution will dissolve without winding up, with Providus Bank emerging as the surviving entity.

The combined entity is poised to reshape the banking industry, leveraging Unity Bank’s extensive network of approximately 230 branches nationwide and Providus Bank’s expertise in digital banking and customer-focused innovation. The merger will create a powerhouse capable of serving households, small and medium enterprises, corporations, and government institutions with greater efficiency. Bolstered by a robust capital adequacy ratio, the new institution is well-positioned to thrive amid Nigeria’s ongoing banking reforms.

Bashir highlighted the strategic importance of the merger, noting that it will combine Unity Bank’s geographic reach with Providus Bank’s technological prowess. “This merger marks a turning point, creating a stronger, more competitive financial institution,” he said. The bank also confirmed that its directors and solicitors are authorized to secure all necessary regulatory and court approvals to ensure a seamless transition.

As the merger progresses, stakeholders anticipate a stronger, more resilient bank that will drive growth and innovation in Nigeria’s financial sector. The acquisition of AMCON’s stake and the merger’s approval signal a bright future for the unified entity, poised to deliver significant value to its diverse customer base.