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By Chukwuma Umeorah
The Asset Management Corporation of Nigeria (AMCON) has sold a 34 per cent equity stake in Unity Bank Plc to Providus Bank. The transaction is expected to strengthen the ongoing merger process between the two financial institutions.
Details obtained from the Nigerian Exchange Limited (NGX) showed that the transaction involved four billion Unity Bank shares, executed at N1.66 per share, amounting to over N6.5 billion. The sale was completed through a crossed dealing on September 25, 2025, in three tranches, just 24 hours ahead of Unity Bank’s Court-Ordered Meeting to approve the scheme of merger.
According to sources, the divestment was carried out with the required regulatory clearance. “The bid was acceptable to AMCON. Any sale of equity above five per cent required prior approval of the Central Bank of Nigeria. Unity Bank’s shares were also temporarily suspended and later lifted to facilitate the trade.”
Providus Bank noted that the merger is expected to provide the bank with wider retail reach by leveraging Unity Bank’s 211-branch network across the 36 states of the federation and the Federal Capital Territory.
The combined entity is projected to expand Providus Bank’s footprint from a niche player to a national financial institution, while deepening its SME lending capacity in agriculture, mining, e-commerce, hospitality and entertainment.
Providus also intends to integrate its digital infrastructure into Unity Bank’s branch network to improve service delivery and operational efficiency.
As regards a court order by Hon. Justice D.I. Dipeolu, Unity Bank shareholders will today decide whether to accept a cash consideration of N3.18 per share or opt for a share swap arrangement under which every 17 Unity Bank shares will be converted into 18 shares in the enlarged Providus Bank.
If approved, Unity Bank’s assets, liabilities, intellectual property and legal matters will be transferred to Providus, with Unity Bank dissolved, and Providus continuing as the surviving entity.
The Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN) had granted prior approvals for the merger in August 2024, with the CBN supporting the process through a N700 billion recapitalisation loan to the combined entity.
