Unity Bank Providus Bank merger secures 99% shareholder approval, paving way for a stronger institution with CBN backing

At a court-ordered meeting held in Abeokuta, Ogun State, on Friday, 293 out of 295 shareholders representing 99.32 per cent of Unity Bank’s N4.4bn total shareholding voted in favour of the proposed merger with Providus Bank Limited. Only two shareholders opposed the move.

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Under the terms of the scheme, Unity Bank shareholders may either receive N3.18 in cash for every share held or be allotted 18 ordinary shares in Providus Bank (credited as fully paid) in exchange for every 17 Unity Bank shares.

Once completed, Unity Bank’s entire share capital will be cancelled and the institution dissolved without winding up.

Providus Bank will retain its certificate of incorporation as the enlarged entity, which will operate under the name Providus-Unity Bank (PUB).

Speaking on the development, Unity Bank Chairman Hafiz Bashir described the approval as a “strong vote of confidence” in the merger’s potential.

“By joining forces with Providus Bank, we are creating a stronger, more competitive, and more resilient institution that will deliver long-term value to our customers, shareholders, and the Nigerian economy,” he said.

The meeting also clarified that Thursday’s lifting of the Nigerian Exchange Limited suspension on Unity Bank shares was to facilitate the crossing of 4bn units of Asset Management Corporation of Nigeria shares to an existing shareholder, not Providus Bank.

NGX data showed the shares were exchanged off-market in three deals between Cordros Securities and PAC Securities.

Shareholders authorised the bank’s directors and advisers to pursue the necessary court orders to give full effect to the merger scheme.

Analysts have commended the move, noting it positions PUB as a financial powerhouse capable of leveraging both traditional banking strength and digital innovation.

The Central Bank of Nigeria (CBN) had in August 2024 approved financial accommodation to support the merger, with Acting Director of Corporate Communications, Sidi Ali Hakama, stating the intervention was critical to safeguarding financial stability and addressing Unity Bank’s obligations.

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“This strategic move is designed to bolster the stability of Nigeria’s financial system and avert potential systemic risks,” the CBN said in its statement.