Unity Bank: AMCON transfers 34 percent stake to Providus to strengthen merger deal

*The ongoing business combination arrangement with Unity Bank is ‘a milestone for Providus Bank’, as the transaction puts it in a comfortable position to beat the March 31, 2026, recapitalisation deadline handed down by the Central Bank of Nigeria

Alexander Davis | ConsumerConnect

The Asset Management Corporation of Nigeria (AMCON) Thursday offloaded 34 percent of its stake in Unity Bank Plc to Providus Bank.

The move is said to have strengthened the business combination deal between Providus and Unity Bank in the country.

ConsumerConnect gathered the AMCON 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.

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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 September 25, 2025.

It is also noted that the ongoing business combination arrangement is “a milestone for Providus Bank”, as the deal puts financial institution in a comfortable position to beat the March 31, 2026, recapitalisation deadline handed down by the Central Bank of Nigeria (CBN).

The bank began operations June 2017. It is licensed by the Central Bank of Nigeria to provide banking services to individuals and businesses.

It 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.

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Its tailored financial service delivery includes: Business Advisory, Portfolio Management, Personalised Relationship Management, Fast-tracked Service delivery and Self-service solutions. Providus Bank 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 & Entertainment.

The financial institution believes that the New World of Fast, Smart, Personal, and Borderless banking relationship is here.

It stated: “We are, therefore, inspired by our Future Forward Banking ethos to make life (at work and leisure) more exciting for our partners with the use of cutting-edge technology that delivers best-in-class customer satisfaction.”

In less than 10 years, Providus Bank has emerged as one of the fastest growing financial institutions in the country.

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, it said.

Additionally, Providus Bank will significantly benefit from scale in retail banking as it will expand its footprint from largely digital operations to a full-fledged national player.

It also brings in a strong SME lending pipeline, especially in agriculture, mining, e-commerce, 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. 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.

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