The Asset Management Corporation of Nigeria (AMCON) has sold its 34% equity stake in Unity Bank Plc to Providus Bank, marking a major milestone in a long-awaited merger between the two financial institutions.
According to trade details on the Nigerian Exchange (NGX), the transaction was completed on Thursday, September 25, 2025, via a crossed deal involving 4 billion Unity Bank shares at N1.66 per share, amounting to over N6.5 billion in value.
Nairametrics can confirm that the acquired shares are intended to be transferred to Providus Bank, further solidifying its takeover of Unity Bank as part of a broader merger scheme that is set to culminate in Unity Bank’s full integration into Providus.
What this means
The share acquisition by Providus Bank, especially the AMCON stake, is a critical milestone ahead of the September 26 shareholder vote.
- If all approvals go as expected, Providus Bank could complete the acquisition and rebrand as a fully national retail bank, with digital reach and nationwide presence.
- Unity Bank’s shareholders are set for a payout of N3.18 per share, a remarkable return considering the stock had been flat at N1.51 prior to its suspension.
Providus Bank’s bold leap into national retail banking
The acquisition marks a milestone for Providus Bank, which began operations in June 2017.
- In under a decade, the bank has positioned itself as a fast-growing, digitally focused lender, popular among Nigeria’s tech-savvy customers and SME ecosystem.
- Through this merger, Providus aims to transform from a niche player into a national bank, leveraging Unity Bank’s over 211-branch network spread across all 36 states and the FCT.
The move aligns with Providus’ broader strategy to deepen its retail presence and diversify its customer base.
- The merger provides Providus Bank with immediate scale in retail banking, expanding its footprint from a largely digital operation to a full-fledged national player.
- It also brings in a strong SME lending pipeline, especially in agriculture, mining, e-commerce, hospitality, and entertainment sectors, which both banks already support.
- Providus plans to integrate its technology stack into Unity Bank’s branch network, enhancing service delivery and cost efficiency.
- The bank believes the combined entity will unlock new value across its retail, SME, and digital channels.
Comparing the two banks
Unity Bank was last valued at N19.4 billion before its shares were suspended in May 2024.
- The stock had been flat at N1.51 before the suspension, making the N3.18 offer a 110% premium.
- As of 2024, Unity Bank’s unaudited total assets stood at N414 billion, with customer deposits of N402 billion.
Providus Bank, by comparison, had grown its asset base from N373 billion in 2020 to N2.56 trillion in 2024.
Its customer deposits reached N1.5 trillion, while profit after tax stood at N33 billion, slightly down from N43.5 billion in 2023.
AMCON’s exit from Unity Bank
Before this transaction, Unity Bank was owned by a small group of institutional and private investors, with AMCON as the largest single shareholder.
In addition to AMCON’s 34.22% stake, PanAfrican Capital Nominee Limited held 12.67%, Lighthouse Capital Limited had 9.01%, Ibad Limited held 6.14%, and El-Amin Nigeria Limited owned 5.27%. The remaining 32.69% was held by various other shareholders.
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.
AMCON’s sale of its Unity Bank stake concludes years of ownership following the bank’s earlier rescue.
- The deal delivers a substantial cash inflow for the government-owned asset manager and likely represents a profitable exit based on Unity Bank’s historical market lows.
- The timing is significant, coming just a day before Unity Bank’s court-ordered shareholder meeting scheduled for Friday, September 26, 2025, where shareholders will vote on key aspects of the merger, including cash payouts, transfer of assets and liabilities, and board approvals.
Court-sanctioned merger timeline
Per the court order by Hon. Justice D.I. Dipeolu, Unity Bank shareholders will decide whether to approve a cash consideration of N3.18 per share or opt for a share swap under which every 17 Unity Bank shares convert into 18 shares in the enlarged Providus Bank.
- If approved, Unity Bank’s assets, liabilities, intellectual property, and ongoing legal matters will be transferred to Providus. Unity Bank will be dissolved, with Providus continuing as the surviving entity.
- The meeting is expected to pave the way for regulatory sign-offs from the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC), both of which had already approved the merger in August 2024.
The CBN had also backed the deal with a N700 billion lifeline loan to recapitalize the combined entity.
Why the merger matters
Providus Bank sees the merger as a strategic play to accelerate its presence in retail banking, a segment Unity Bank has long operated in with geographic depth.
The synergy between the two banks also lies in their shared focus on SME lending and emerging sectors, including agriculture, hospitality, e-commerce, mining, and entertainment.
The integration will provide the enlarged bank with the scale to compete nationally, while leveraging Providus Bank’s digital infrastructure to modernize service delivery across Unity Bank’s physical branches.
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