Shareholders Approve Unity-Providus Merger Amid CBN Support

Shareholders of Unity Bank Plc have approved a merger deal with Providus Bank Limited, signaling a strategic move aimed at stabilizing operations and enhancing long-term value.

The approval was granted at a court-ordered general meeting held in Abeokuta on September 26, as confirmed in a statement released Monday by Alabi Williams, the company secretary.

Under the merger scheme, Unity Bank’s assets, liabilities, and undertakings will be fully transferred to Providus Bank. Legal proceedings involving Unity Bank will also continue under Providus Bank’s name once the court sanctions the scheme.

As part of the transaction, Unity Bank shareholders are to receive N3.18 per share or be allotted 18 Providus Bank shares for every 17 Unity Bank shares they currently hold.

“That the entire share capital of the Bank be cancelled and the Bank be dissolved without winding up. That the certificate of incorporation of Providus Bank Limited shall be the certificate of incorporation of the Enlarged Bank,” the statement read.

“That the Solicitors of the Bank be and are hereby directed to seek orders of the Court sanctioning the Scheme and the foregoing resolutions, as well as such other incidental, consequential or supplemental orders as are necessary or required to give full effect to the Scheme.

“That the Directors of the Bank be and are hereby authorised to take such other actions and steps as may be necessary or required to give full effect to the Scheme.”

The merger remains subject to final court approval, as well as regulatory clearance from the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC).

In August 2024, the CBN approved a N700 billion 20-year term loan to support the merger, describing it as a measure to “guarantee the merged entity’s operating stability.”