The Asset Management Corporation of Nigeria (AMCON) on Thursday sold its 34 per cent total equity stake in Unity Bank Plc to Providus Bank, marking a significant boost to a merger deal between the two financial institutions.
THISDAY gathered that the sale of the 34 per cent 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.
Findings by THISDAY on NGX revealed that the transaction was completed involving four billion Unity Bank shares at N1.66 per share, amounting to over N6.5 billion in value. A total of three deals was carried out on Unity Bank shares on the Exchange on September 25, 2025.
A source noted that the bid was acceptable to AMCON. The sale of anything above five per cent shares would have required prior approval of the Central Bank of Nigeria (CBN), and the suspension of Unity Bank shares also lifted to facilitate trade.
The merger marks a milestone for Providus Bank, which began operations in June 2017.
In less than 10 years, Providus Bank has emerged as one of the fastest growing financial institutions in the country. Providus is a digitally focused lender, popular among Nigeria’s tech-savvy customers and SME ecosystem.
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’ 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.
Per the court order by Hon. Justice D.I. Dipeolu, 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. 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.
The CBN had also backed the deal with a N700 billion lifeline loan to recapitalise the combined entity.
Kayode Tokede
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