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Business News of Friday, 17 November 2023


Unity Bank’s shareholders make over N1bn in 4 hours as Providus Bank moves to acquire majority stake

Unity Bank logo Unity Bank logo

The market value of Unity Bank, one of the publicly listed financial institutions, has increased to a 2-month high following the news that there is acquisition interest. reported earlier that Providus Bank Limited, a 7-year-old financial institution, is negotiating with Unity Bank management to acquire a majority stake.

In 2018, there was a failed move by Milost Global Inc., a New York-based private equity, to invest $ 1 billion in the bank, and since then, the bank has been seeking a preferred suitor.

Unity Bank has been grappling with meeting its minimum capital requirement since 2017, as reported by ThisDay.

In 2018, there was an unsuccessful attempt by Milost Global Inc., a New York-based private equity firm, to invest $1 billion in the bank. Since then, the bank has been actively searching for a preferred investor.

Unity Bank value rises

Providus Bank's action was a favourable development for the struggling bank, and this positive impact was evident in Unity Bank's stock performance on Thursday, November 16, 2023.

Data collected from the Nigerian Exchange(NGX) revealed that Unity Bank's share price surged to N1.07, the highest level it has reached since September 2023. Also, the closing price on Thursday represents a 9.18% increase from the previous day's price of N0.98 on Wednesday, November 15, 2023.

After taking over Dubai-based assets, UBA to distribute $6bn loan to mechanics, farmers, other Furthermore, the rise in share price pushed the bank's market capitalisation to N12.5 billion on Thursday compared to the previous value of N11.68 billion on Wednesday.

This indicates that shareholders made over N1.05 billion. Unity Bank management hopes to close the deal with Providus Bank 5 years after the failed Milost Global Inc. deal.

Zenith Bank chairman Jim Ovia makes over N13bn in 5 hours, buys more shares

In another report, revealed that Jim Ovia, the owner of Zenith Bank, has purchased additional shares in his bank. The new shares were purchased after he made over N13 billion from President Tinubu's inaugural speech.

He made money between 9:30 and 14:30, the trading hours of the Nigerian stock market.