If sanctioned, the deal will result in the cancellation of Unity Bank’s entire share capital, effectively dissolving the institution. Providus Bank’s certificate of incorporation would then serve as that of the enlarged entity, combining the assets, liabilities, and undertakings of both lenders into a single financial institution.
Shareholder Options
Under the scheme, Unity Bank shareholders are presented with two consideration options:
- Cash Option: ₦3.18 per share held.
- Equity Swap: 18 Providus Bank ordinary shares of ₦0.50 each in exchange for every 17 Unity Bank shares.
Other Key Resolutions
The notice further outlined resolutions to be considered during the meeting, including:
- Continuation of all legal proceedings involving Unity Bank in the name of Providus Bank, once the court sanctions the merger.
- Authorisation for Unity Bank’s directors to approve any regulatory modifications required by the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC).
- Empowering the bank’s solicitors to seek the necessary court orders to give full effect to the merger.
The Federal High Court has appointed Unity Bank’s Board Chairman, Hafiz Mohammed Bashir, or in his absence, Managing Director Ebenezer A. Kolawole, to preside over the shareholders’ meeting at OOPL Hotel, Abeokuta. Approval of the merger requires not less than three-quarters in value of the shares held, either in person or by proxy.
Industry Implications
If the merger sails through, it will not only mark the end of Unity Bank as an independent entity but also expand Providus Bank into a stronger, consolidated player within Nigeria’s financial sector. Analysts suggest the move could reshape competition among mid-tier banks, strengthening capital buffers and positioning the merged entity for broader market opportunities.
Kogi Tribune will continue to provide updates as shareholders prepare for the decisive vote.
