By Ganiyu Mubarak
Copyright theeagleonline
The Asset Management Corporation of Nigeria (AMCON) on Thursday offloaded 34 percent of its stake in Unity Bank Plc to Providus Bank.
This move by the Federal Government corporation has strengthened the business combination deal between Providus Bank and Unity Bank.
The 34 percent total equity stake in Unity Bank was transacted through a crossed deal on the floor of the Nigerian Exchange Limited (NGX) to the preferred bidder 24 hours ahead of their Court-Ordered Meeting to approve the scheme of merger.
The transaction involved four billion Unity Bank shares at N1.66 per share, amounting to over N6.5 billion in value.
A total of three deals were carried out on Unity Bank shares on the Exchange on September 25, 2025.
The ongoing business combination arrangement is a milestone for Providus Bank as it puts it in a comfortable position to beat the March 31, 2026 recapitalisation deadline that was placed by the Central Bank of Nigeria.
Providus Bank began operations in June 2017.
It is licensed by the Central Bank of Nigeria to provide banking services to individuals and businesses.
The bank has a strong IT infrastructure and digital channels, which it deploys to provide exceptional service to our customers so they can achieve their objectives.
Providus Bank is an innovative financial institution that provides personal, private, corporate, commercial, and digital banking products and solutions.
Its tailored financial services delivery includes: Business Advisory, Portfolio Management, Personalised Relationship Management, Fast-tracked Service delivery, and Self-service solutions.
Providus Bank’s competitive advantage in Private, Institutional, Business, and Personal Banking is driven by the philosophy to create support and value for Institutions, Agencies, SMEs, and HNIs.
Its business development strategy also focuses on developing expertise and collaborating to improve the non-oil (emerging) sector of the Nigerian economy, which includes but not limited to Agriculture, Mining, Hospitality, E-commerce, and Art and Entertainment.
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Through this merger, Providus aims to transform from a niche player into a national bank, leveraging Unity Bank’s over 211-branch network spread across all 36 states and the FCT.
The move aligns with Providus Bank’s broader strategy to deepen its retail presence and diversify its customer base.
Additionally, Providus Bank would significantly benefit from scale in retail banking as it would expand its footprint from a largely digital operation to a full-fledged national player.
It also brings in a strong SME lending pipeline, especially in agriculture, mining, ecommerce, hospitality, and entertainment sectors, which both banks already support.
Providus plans to integrate its technology stack into Unity Bank’s branch network, enhancing service delivery and cost efficiency.
The bank believes the combined entity will unlock new value across its retail, SME, and digital channels.
At the court order meeting, Unity Bank shareholders will decide whether to approve a cash consideration of N3.18 per share or opt for a share swap under which every 17 Unity Bank shares convert into 18 shares in the enlarged Providus Bank.
If approved, Unity Bank’s assets, liabilities, intellectual property, and ongoing legal matters will be transferred to Providus Bank.
Unity Bank will be dissolved, with Providus continuing as the surviving entity.
The meeting is expected to pave the way for regulatory sign-offs from the CBN and the Securities and Exchange Commission (SEC), both of which had already approved the merger in August 2024.
