Unity Bank Plc has confirmed that the 34 per cent equity stake recently divested by the Asset Management Corporation of Nigeria (AMCON) was purchased by an existing shareholder, not by Providus Bank Limited as widely reported.
Chairman of Unity Bank, Hafiz Bashir, made the clarification on Friday during the lender’s court-ordered shareholders’ meeting in Abeokuta.
The stake sale, valued at N6.5bn and involving four billion shares executed at N1.66 per share on the Nigerian Exchange Limited, had been linked to Providus Bank in earlier reports.
“The acquisition of AMCON’s 34 per cent stake by an existing shareholder further strengthens confidence in Unity Bank’s future. Alongside the merger with Providus Bank, this marks the beginning of a new chapter that will deliver greater value to shareholders, customers, and the Nigerian economy,” Bashir said.
At the meeting, shareholders overwhelmingly approved the proposed merger scheme with Providus Bank. Of 295 shareholders who participated, 293 — representing 99.32 per cent of the bank’s shareholding worth N4.4bn — voted in favour.
Under the terms of the deal, Unity Bank shareholders will receive N3.18 per share or be allotted 18 ordinary shares of N0.50 each in Providus Bank Limited (credited as fully paid) for every 17 ordinary shares held in Unity Bank.
Upon completion, Unity Bank’s share capital will be cancelled and the bank dissolved without being wound up, while Providus Bank will retain its certificate of incorporation as the surviving entity.
Shareholders also authorised directors and solicitors of the bank to obtain the necessary court approvals and take all steps required to implement the merger.
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