AMCON $\text{34}$% Unity Bank Stake Sold to Existing Investor, Not ProvidusBank

The Chairman of Unity Bank Plc, Hafiz Bashir, has moved to clarify the sale of the Asset Management Corporation of Nigeria’s (AMCON) $\text{34}$ per cent stake in the bank, stating that the substantial block of shares was acquired by an existing Unity Bank shareholder and not by its pending merger partner, Providus Bank.

The clarification was made during the court-ordered shareholders’ meeting held on Friday in Abeokuta, which ultimately resulted in the approval of the Scheme of Merger between Unity Bank and Providus Bank.

The divestment, which involved $\text{4}$ billion Unity Bank shares, was executed on the trading floor of the Nigerian Exchange Limited at $\text{N1.66}$ per share, amounting to a total transaction value of approximately $\text{N6.5}$ billion. The timing of the transaction just a day before the crucial shareholder meeting had initially fueled speculation that Providus Bank was consolidating its position ahead of the merger vote.

Addressing the development, Mr. Bashir affirmed that the sale to an unnamed existing investor “further strengthens confidence in Unity Bank’s future,” emphasizing its significance alongside the newly approved merger.

Meanwhile, a massive majority of shareholders voted in favour of the merger scheme with Providus Bank. Out of $\text{295}$ participating shareholders, $\text{293}$, representing $\text{99.32}$ per cent of the bank’s shareholding by value, approved the resolution. Upon completion, Unity Bank shareholders will either receive $\text{N3.18}$ cash per share or be allotted $\text{18}$ ordinary shares of Providus Bank for every $\text{17}$ Unity Bank shares held. The merger will see Unity Bank’s entire share capital cancelled and the institution dissolved, with Providus Bank emerging as the surviving and enlarged entity.