Unity Bank clarifies AMCON stake sale, shareholders approve Providus merger Business Hallmark

The Chairman of Unity Bank Plc, Hafiz Bashir, has clarified that the 34 per cent equity stake recently sold by the Asset Management Corporation of Nigeria (AMCON) was acquired by an existing shareholder of the bank, not by Providus Bank Limited.

Bashir made the disclosure at a court-ordered shareholders’ meeting held on Friday in Abeokuta.

Reports had earlier suggested that Providus Bank acquired the stake in a N6.5bn transaction involving four billion Unity Bank shares executed at N1.66 per share through a crossed deal on the Nigerian Exchange Limited.

“The acquisition of AMCON’s 34 per cent stake by an existing shareholder further strengthens confidence in Unity Bank’s future. Alongside the merger with Providus Bank, this marks the beginning of a new chapter that will deliver greater value to shareholders, customers, and the Nigerian economy,” Bashir said.

Meanwhile, Unity Bank shareholders overwhelmingly approved the proposed merger with Providus Bank at the meeting. Out of 295 shareholders who participated, 293, representing 99.32 per cent of the bank’s shareholding, valued at N4.4bn, voted in favour of the merger resolutions.

Under the terms of the scheme, Unity Bank shareholders will receive N3.18 per share or be allotted 18 ordinary shares of N0.50 each in Providus Bank Limited (credited as fully paid) for every 17 ordinary shares of Unity Bank held.

Upon completion, Unity Bank’s entire share capital will be cancelled and the bank dissolved without being wound up, while Providus Bank will retain its certificate of incorporation as the enlarged entity.

Shareholders also authorised the bank’s directors and solicitors to secure the necessary court orders and take all required steps to give full effect to the scheme.

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