AMCON Offloads 34% Stake in Unity Bank to Providus Bank Ahead of Landmark Merger

The Asset Management Corporation of Nigeria (AMCON) has sold its entire 34 per cent equity holding in Unity Bank Plc to Providus Bank Ltd, sealing a landmark transaction on the Nigerian Exchange (NGX). The deal, which marks one of the largest banking equity transfers of the year, positions Providus Bank to complete its planned merger with Unity Bank.

According to NGX data, the sale was executed through the exchange’s negotiated window in three separate crosses involving 4 billion ordinary shares of Unity Bank at ₦1.66 per share, amounting to about ₦6.5 billion. The transaction took place just 24 hours before a Federal High Court-ordered shareholders’ meeting to vote on the merger scheme.

Market watchers say the deal signals both regulatory approval and investor confidence. Under NGX rules, any transaction involving five per cent or more of a bank’s shares requires clearance from the Central Bank of Nigeria (CBN). Unity Bank’s shares, previously suspended because of the ongoing merger process, were temporarily lifted to facilitate the trade.

Industry analysts describe the acquisition as a strategic leap for Providus Bank, which began operations in 2017 and built a reputation as a digitally focused lender serving SMEs and tech-savvy customers. By absorbing Unity Bank’s nationwide 211-branch network, Providus is expected to transform from a niche digital player into a full-scale national bank with stronger retail penetration.

Providus has already signalled plans to integrate its technology stack across Unity Bank’s branches, promising improved service delivery, cost efficiency, and an expanded SME lending pipeline covering agriculture, mining, ecommerce, hospitality, and entertainment. At today’s court-ordered meeting, Unity Bank shareholders will vote on whether to receive ₦3.18 per share in cash or opt for a share-swap of 17 Unity shares for 18 in the enlarged Providus Bank. If approved, all Unity Bank assets, liabilities and ongoing cases will transfer to Providus, which will continue as the surviving entity with a CBN-backed ₦700 billion recapitalisation facility.

source: the nation