By Obinna Uballa
Unity Bank shareholders are set for a windfall payout of N3.18 per share following the sale of a 34 per cent equity stake in the bank by the Asset Management Corporation of Nigeria (AMCON) to Providus Bank in a N6.5 billion deal.
The transaction, executed on the Nigerian Exchange (NGX) via a crossed deal involving 4 billion Unity Bank shares at N1.66 per share, marks a critical milestone ahead of the merger between the two institutions, reports said.
For shareholders, the N3.18 cash consideration represents a 110 per cent premium over Unity Bank’s pre-suspension price of N1.51 per share, offering a rare payout in a market where many banks are still grappling with recapitalisation pressures, it was gathered.
According to the scheme, investors will have the option of receiving the cash settlement or swapping 17 Unity Bank shares for 18 shares in the enlarged Providus Bank, which is set to emerge as a national retail lender with strong digital reach.
If approved at Friday’s court-ordered meeting, Unity Bank will be dissolved, with all its assets, liabilities, and intellectual property transferred to Providus Bank, which began operations in 2017 and has since grown into a fast-rising institution with N2.56 trillion in assets and N1.5 trillion in deposits as of 2024.
By contrast, Unity Bank, last valued at N19.4 billion before suspension, had N414 billion in assets and N402 billion in customer deposits, underscoring the scale of Providus’ balance sheet advantage.
The AMCON sale, coupled with the shareholders’ vote, effectively clears the way for Providus to consolidate its takeover, at a time when the Central Bank of Nigeria’s recapitalisation deadline has forced weaker banks into mergers and acquisitions.
