Unity Bank clarifies AMCON stake sale

Unity Bank Plc has clarified that the 34 percent equity stake previously held by the Asset Management Corporation of Nigeria (AMCON) was acquired by an existing investor, not by Providus Bank Limited, as earlier speculated.

The bank made the clarification in a statement on September 25, 2025, following reports that Providus Bank had purchased the shares in a ₦6.5 billion transaction involving more than four billion Unity Bank shares. The statement, issued shortly after the lifting of suspension on Unity Bank’s shares at the Nigerian Exchange Limited, confirmed that the acquisition was executed by an existing shareholder.

“The shares were acquired by an existing shareholder of the bank, not by Providus Bank Limited, which is currently pursuing a merger with Unity Bank,” the statement read.

The development has been described as a boost to stakeholder confidence in the ongoing merger discussions between Unity Bank and Providus Bank. At a court-ordered shareholders’ meeting held on Friday in Abeokuta, overwhelming approval was secured for the merger. Out of 295 shareholders present, 293, representing 99.32 percent of the total shareholding valued at ₦4.4 billion, voted in favour of the merger resolutions.

Under the terms of the Scheme of Merger, Unity Bank shareholders will be offered settlement through either a cash consideration of ₦3.18 per share or a share swap arrangement where every 17 Unity Bank shares will be exchanged for 18 fully paid ordinary shares of ₦0.50 each in Providus Bank.

Upon completion, Unity Bank’s entire share capital will be cancelled and the bank dissolved without winding up, while Providus Bank will remain as the surviving entity.

The enlarged institution will commence operations with about 230 branches nationwide, combining Unity Bank’s extensive physical presence with Providus Bank’s expertise in digital banking and innovation.

With an improved capital adequacy ratio, the new entity is expected to compete more effectively under Nigeria’s evolving banking reforms.

Speaking at the meeting, the Chairman of Unity Bank Plc, Hafiz Mohammed Bashir, said the acquisition of AMCON’s stake by an existing investor reinforces confidence in the bank’s prospects.

He added that the merger with Providus Bank represents a new chapter for the institution, one that will create greater value for shareholders, customers, and the Nigerian economy.

Unity Bank further disclosed that shareholders have authorized its directors and solicitors to obtain all necessary regulatory and court approvals to ensure the smooth implementation of the merger.