Providus Bank finalises merger deal with Unity Bank

Unity Bank Plc has announced significant progress in its ongoing merger process with Providus Bank Limited, confirming that the court has approved a meeting of shareholders to consider and ratify the proposed scheme of merger.

According to a disclosure to the Nigerian Exchange, the court-ordered meeting of holders of fully paid-up ordinary shares of Unity Bank will take place on September 26, 2025. At the meeting, shareholders will vote on several special resolutions critical to completing the transaction.

Key Resolutions to Be Considered

1. Approval of the Scheme Document: Shareholders will review and approve the merger scheme as outlined in the document dated June 25, 2025, with authority granted to directors to consent to any modifications required by the Securities and Exchange Commission (SEC), the Central Bank of Nigeria (CBN), or the Court.

2. Transfer of Assets and Liabilities: All assets, liabilities, undertakings, intellectual property rights, and real properties of Unity Bank will be merged with those of Providus Bank Limited under the agreed terms.

3. Continuation of Legal Proceedings: All pending or future legal actions involving Unity Bank will be assumed by Providus Bank after the court sanctions the merger.

4. Shareholder Consideration: After court approval, Unity Bank shareholders will have two options:

Receive ₦3.18 per share held, or

Exchange 17 Unity Bank shares for 18 ordinary shares in Providus Bank Limited (credited as fully paid).

5. Dissolution of Unity Bank: The entire share capital of Unity Bank will be cancelled, and the bank will be dissolved without winding up.

6. Providus Bank’s Incorporation to Stand: The certificate of incorporation of Providus Bank will become the certificate of the enlarged entity.

7. Legal Formalities: Bank solicitors have been mandated to obtain court sanction for the scheme and related resolutions.

8. Directors’ Mandate: Unity Bank directors have been authorised to take all necessary steps to implement the merger effectively.

Once sanctioned by the Court and approved by regulators, the transaction will result in the creation of an enlarged entity under Providus Bank’s name, marking a major consolidation move in Nigeria’s banking sector.