Unity Bank Shareholders Approve Merger with Providus Bank
Shareholders of Unity Bank Plc have given their approval for the proposed merger with Providus Bank Limited, marking a significant step toward the consolidation of the two financial institutions.
The approval was granted during a court-ordered general meeting held in Abeokuta on September 26, according to a statement released on Monday by Alabi Williams, the company secretary of Unity Bank.
Under the terms of the proposed scheme of arrangement, all assets, liabilities, and undertakings of Unity Bank will be transferred to Providus Bank. In addition, all legal proceedings currently involving Unity Bank will continue under the name of Providus Bank once the court gives its final approval.
As part of the transaction, Unity Bank shareholders will have two options: receive a cash consideration of ₦3.18 per share, or opt for a share swap in which 18 ordinary shares of Providus Bank will be issued for every 17 shares currently held in Unity Bank.
The statement further disclosed that Unity Bank’s entire share capital will be canceled, and the institution will be dissolved without winding up. Following the merger, Providus Bank’s certificate of incorporation will serve as that of the newly enlarged entity.
“The Solicitors of the Bank are hereby directed to seek the court’s sanction of the Scheme and all associated resolutions,” the statement read. “The Board is also authorized to take any necessary actions required to implement the Scheme in full.”
The merger is still subject to final approvals from the Federal High Court, the Central Bank of Nigeria (CBN), and the Securities and Exchange Commission (SEC).
This development follows the ₦700 billion financial support package approved by the CBN in August 2024 to facilitate the merger. The bailout, structured as a 20-year term loan, is intended to ensure the operational stability of the merged entity.
Once finalized, the merger is expected to strengthen the financial position of both banks, expand their market reach, and improve competitiveness within Nigeria’s banking sector.
