Segun Atanda/
Shareholders and boards of directors of Providus Bank and Unity Bank have approved the merger of the two financial institutions, paving the way for the creation of one of Nigeria’s largest lenders.
The approval was granted at a court-ordered Extraordinary General Meeting (EGM) held on Friday in Abeokuta, Ogun State.
Out of 295 shareholders who participated, 293, representing 99.32 per cent of total shareholding valued at about N4.4 billion, voted in favour of the resolutions, while two shareholders opposed.
Under the merger scheme, Unity Bank shareholders will have the option of receiving N3.18 per share in cash or being allotted 18 ordinary shares of N0.50 each in Providus Bank for every 17 ordinary shares of Unity Bank held.
Once completed, Unity Bank’s share capital will be cancelled and the bank dissolved without winding up, leaving Providus Bank as the surviving entity.
In a joint statement, the two banks commended the Central Bank of Nigeria (CBN) for its support and foresight, saying the transaction will strengthen confidence in the sector and aligns with the regulator’s vision of a customer-focused banking industry capable of supporting Nigeria’s ambition of becoming a trillion-dollar economy.
The combined bank is expected to operate around 230 branches nationwide, bringing together Unity Bank’s legacy network with Providus Bank’s reputation for innovation, digital platforms, and customer-centric services.
To facilitate the transaction, the CBN had earlier approved a N700 billion financial accommodation to support the enlarged institution.
Chairman of Unity Bank, Hafiz Mohammed Bashir, described the shareholder endorsement as a strong vote of confidence in the deal.
“By joining forces with Providus Bank, we are creating a stronger, more competitive, and more resilient institution that will deliver long-term value to our customers, shareholders, and the Nigerian economy,” he said.
The merger also coincides with the sale by the Asset Management Corporation of Nigeria (AMCON) of its 34 per cent stake in Unity Bank. The shares were acquired by an existing Unity Bank shareholder, not Providus Bank, according to the company’s chairman.
With shareholder approval secured, directors and solicitors of both banks will now proceed to obtain court sanctions and final regulatory clearances to consummate the merger.
Industry watchers say the deal marks a major consolidation in Nigeria’s financial services sector and positions the new entity to better withstand economic pressures while expanding its reach to millions of customers nationwide.
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