The Asset Management Corporation of Nigeria (AMCON) has sold its entire equity stake in Unity Bank Plc to Providus Bank, sealing a landmark deal that strengthens the ongoing merger between the two institutions.
The transaction, worth N6.5 billion, was executed at the Nigerian Exchange (NGX) through three negotiated trades involving 4.0 billion Unity Bank shares. The deal represents 34 per cent of Unity Bank's issued share capital and signals strong regulatory and market confidence in the merger process.
Analysts say the merger positions Providus Bank for a major leap from its largely digital focus into nationwide retail banking, while also deepening its reach into small and medium-sized enterprise (SME) lending. Both banks already have strong SME portfolios, particularly in agriculture, mining, ecommerce, hospitality, and entertainment, and the combination is expected to expand access to affordable credit for small businesses.
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Providus has also announced plans to integrate its advanced technology systems into Unity Bank's branch network, a move expected to boost service delivery, improve cost efficiency, and give SMEs better access to digital financial tools.
Unity Bank shareholders will vote on the merger terms in a court-ordered meeting, choosing between a cash payout of N3.18 per share or a share swap arrangement. Once finalized, all Unity Bank assets, liabilities, and operations will transfer to Providus, creating a stronger entity supported by a N700 billion recapitalization facility from the Central Bank of Nigeria (CBN).
For small businesses, experts note that the merger could mean broader lending pipelines, more tailored financial products, and improved nationwide access to both physical branches and digital banking platforms.
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