The Asset Management Corporation of Nigeria (AMCON) has sold its 34% stake in Unity Bank Plc to Providus Ban.

This moves has now clear the way for a long-awaited merger between the two financial institutions.

According to trade details on the Nigerian Exchange (NGX), the transaction was completed on Thursday, September 25 through a crossed deal involving 4 billion Unity Bank shares at N1.66 per share, amounting to over N6.5 billion.

The acquired shares are expected to be transferred to Providus Bank ahead of a court-ordered shareholder meeting scheduled for Friday, September 26, where Unity Bank shareholders will vote on the merger proposal.

Why AMCON deal is important?

The acquisition marks a critical milestone in Providus Bank’s strategy to expand its footprint and digital banking reach. If approved, Unity Bank’s assets, liabilities, intellectual property, and ongoing legal matters will be transferred to Providus Bank, and Unity Bank will be dissolved, leaving Providus as the surviving entity.

Shareholders of Unity Bank are being offered N3.18 per share in cash, representing a 110% premium over the stock’s suspension price of N1.51, or an alternative option to participate in a share swap, under which every 17 Unity Bank shares would convert into 18 shares in the enlarged Providus Bank.

Details about Providus

Providus Bank, established in June 2017, has rapidly expanded its operations and positioned itself as a digitally focused lender., DailyTrust reports.

Its asset base grew from N373 billion in 2020 to N2.56 trillion by 2024, while customer deposits increased to N1.5 trillion. Profit after tax reached N33 billion in 2024, slightly lower than N43.5 billion in 2023, reflecting broader market conditions.

Unity Bank, by comparison, had unaudited total assets of N414 billion and deposits of N402 billion as of 2024. The merger comes amid a broader recapitalisation drive by the Central Bank of Nigeria (CBN), which has set capital requirements for commercial banks. Only 14 banks have met the required thresholds, prompting consolidation talks across the sector.