The Asset Management Corporation of Nigeria has sold its 34 per cent equity stake in Unity Bank Plc to Providus Bank, marking a significant milestone in a long-awaited merger between the two financial institutions.

The transaction was completed via a crossed deal involving 4 billion Unity Bank shares at N1.66 per share, amounting to over N6.5 billion in value. The acquired shares will be transferred to Providus Bank, further solidifying its takeover of Unity Bank.

This development is crucial ahead of the September 26 shareholder vote, where Unity Bank shareholders will decide on key aspects of the merger. If approved, Providus Bank could complete the acquisition and rebrand as a fully national retail bank with digital reach and nationwide presence.

Unity Bank’s shareholders will receive a payout of N3.18 per share, representing a 110% premium considering the stock’s pre-suspension price of N1.51.

The merger will enable Providus Bank to transform from a niche player into a national bank, leveraging Unity Bank’s 211-branch network across all 36 states and the FCT.

This move aligns with Providus’ strategy to deepen its retail presence and diversify its customer base. The combined entity is expected to unlock new value across retail, SME, and digital channels.

Unity Bank’s financials show total assets of N414 billion and customer deposits of N402 billion as of 2024. In contrast, Providus Bank has grown its asset base from N373 billion in 2020 to N2.56 trillion in 2024, with customer deposits reaching N1.5 trillion.

AMCON’s divestment marks its official exit from Unity Bank, more than a decade after it took over as part of Nigeria’s post-crisis bank clean-up. The deal delivers a substantial cash inflow for the government-owned asset manager and likely represents a profitable exit.