BREAKING: Shareholders Approve Unity Bank – Providus Bank Merger

 In a landmark decision, the shareholders of Unity Bank and Providus Bank have given their approval for the merger of the two institutions. 

Key Highlights

• The approval took place at a court-ordered Extraordinary General Meeting (EGM) held on Friday, following a directive from the Federal High Court of Lagos.  
• At the meeting in Abeokuta, 293 shareholders, representing 99.32 % of the shareholding (valued at about ₦4.4 billion), voted in favour of the resolutions. Only two shareholders (0.68 %) opposed the merger.  
• Under the approved scheme:
    • Unity Bank shareholders may choose to receive ₦3.18 in cash for each Unity Bank share held 
    • Alternatively, they can opt for an equity exchange: 18 new shares in Providus Bank for every 17 Unity Bank shares held  
• As part of the merger, all assets, liabilities, undertakings, intellectual property, and legal proceedings of Unity Bank will be transferred to Providus Bank.  
• Consequently, Unity Bank’s share capital will be cancelled, and it will be dissolved without winding up. The certificate of incorporation of Providus Bank will become that of the enlarged, merged entity.  
• The newly formed entity is expected to operate a nationwide branch network (c. 230 branches) and emphasize greater scale, reach and resilience in service delivery.  
• Both banks praised the Central Bank of Nigeria (CBN) for its regulatory support, particularly a ₦700 billion facility that underpinned the transaction.  

What Happens Next & Implications

1. Court Sanctioning & Regulatory Steps
   Though shareholders have approved the merger, its completion hinges on the court granting final sanctioning orders and on requisite regulatory approvals (CBN, SEC, etc.).  
2. Operational & Structural Integration
   The merged entity will need to integrate operations, technology systems, branches, human resources, risk and compliance frameworks, among others.
3. Capital & Financial Restructuring
   Even with the CBN’s support, the merged bank will likely need further capital strengthening to meet regulatory thresholds and maintain a solid balance sheet.  
4. Market & Stakeholder Sentiment
   The move is seen as a signal of the regulator’s resolve to consolidate the banking sector, stabilize weaker institutions, and foster a more resilient financial system.
5. Impact on Shareholders & Deposit Holders
   Shareholders of Unity Bank must decide whether to take cash or equity. Customers and depositors should largely see continuity of services, though changes (re-branding, system migrations) may take place in phases.

In Summary:

Today’s shareholder approval marks a pivotal moment in Nigeria’s banking consolidation drive. If all legal and regulatory steps fall into place, Unity Bank will be subsumed into Providus Bank — creating a more expansive, capitalized, and potentially stronger institution.