Unity Bank shareholders approve merger with Providus Bank

Unity Bank Plc has confirmed that its shareholders have approved a merger with Providus Bank Limited.

The approval was granted during a court-ordered general meeting held in Abeokuta on September 26, according to a statement released by the company secretary, Alabi Williams, on Monday.

Under the scheme, all assets, liabilities, and undertakings of Unity Bank will be transferred to Providus Bank, while ongoing legal proceedings involving Unity Bank will continue under Providus Bank’s name after court sanction.

Shareholders will be compensated either with ₦3.18 per share or by receiving 18 ordinary shares of Providus Bank for every 17 Unity Bank shares held. The resolution also includes the cancellation of Unity Bank’s entire share capital and its dissolution without winding up. Providus Bank’s certificate of incorporation will serve as the certificate of incorporation of the new enlarged bank.

The scheme still requires sanction by the Federal High Court, along with approvals from the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC).

In August 2024, the CBN approved a ₦700 billion bailout package to support the merger. The 20-year term loan was designed to guarantee the financial stability of the new entity.