Categories: BusinessNews

AMCON offloads 34% Unity Bank stake to Providus ahead of merger vote

The Asset Management Corporation of Nigeria (AMCON) has sold its 34.22% holding in Unity Bank Plc to Providus Bank, clearing the path for a landmark merger between the two lenders.

On Thursday, September 25, 2025, the Nigerian Exchange (NGX) recorded a cross-deal of 4 billion Unity Bank shares at ₦1.66 each—valued at more than ₦6.5 billion—signaling the transfer of ownership to Providus.

The sale comes just a day before Unity Bank shareholders decide whether to approve the merger at a court-ordered meeting on Friday, September 26.

Shareholders will choose between a cash payout of ₦3.18 per share—representing a 110% premium on the pre-suspension price of ₦1.51 in May 2024—or a share swap of 17 Unity Bank shares for 18 Providus shares.

If approved, Unity Bank’s assets, liabilities, and obligations will be absorbed by Providus Bank, and the institution dissolved.

The combined entity, backed by a ₦700 billion recapitalisation loan from the Central Bank of Nigeria (CBN), is expected to rebrand as a national retail bank, blending Providus’ digital strength with Unity’s 211-branch network across all 36 states and the FCT.

Providus, which launched operations in 2017, has rapidly grown with a focus on technology-driven banking and SMEs. Its assets stood at ₦2.56 trillion in 2024 with ₦1.5 trillion in deposits and ₦33 billion profit after tax.

Unity Bank, by comparison, reported ₦414 billion in assets and ₦402 billion in deposits in the same year.

The merger aims to expand Providus’ reach, deepen retail banking, and strengthen support for SMEs across sectors including agriculture, mining, e-commerce, hospitality, and entertainment.

AMCON’s divestment marks the end of its decade-long role as Unity Bank’s largest shareholder, a position it assumed following post-crisis intervention.

Other key Unity shareholders included PanAfrican Capital Nominee Limited (12.67%), Lighthouse Capital Limited (9.01%), Ibad Limited (6.14%), and El-Amin Nigeria Limited (5.27%).

With approvals already secured from the CBN and Securities and Exchange Commission (SEC) in August 2024, Friday’s shareholder vote is the final hurdle in creating one of Nigeria’s newest national banking powerhouses.

LUKMAN ABDULMALIK

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