Unity Bank Plc has announced that its shareholders have approved the proposed merger with Providus Bank Limited.
Gatekeepers News reports that the approval came during a court-ordered general meeting held in Abeokuta on September 26, according to a statement issued on Monday by the bank’s secretary, Alabi Williams.
The scheme provides that all assets, liabilities, and obligations of Unity Bank will be absorbed by Providus Bank. Legal proceedings involving Unity Bank will also continue under Providus Bank’s name once the court grants final sanction.
As part of the arrangement, shareholders of Unity Bank will either receive N3.18 per share or be allotted 18 ordinary shares of Providus Bank for every 17 shares they currently hold.
The statement reads, “That the entire share capital of the Bank be cancelled and the Bank be dissolved without winding up. That the certificate of incorporation of Providus Bank Limited shall be the certificate of incorporation of the Enlarged Bank.”
“That the Solicitors of the Bank be and are hereby directed to seek orders of the Court sanctioning the Scheme and the foregoing resolutions, as well as such other incidental, consequential or supplemental orders as are necessary or required to give full effect to the Scheme.”
“That the Directors of the Bank be and are hereby authorised to take such other actions and steps as may be necessary or required to give full effect to the Scheme.”
Unity Bank noted that the process is still subject to the sanction of the Federal High Court and regulatory approvals from both the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC).
In August 2024, the CBN approved a N700 billion financial support package for the transaction. The apex bank noted that the intervention was structured as a 20-year term loan aimed at ensuring the operational stability of the new entity after the merger.
