Providus Bank is poised to assume the corporate identity of Unity Bank Plc, marking a major step in the proposed merger between the two institutions. According to a court-ordered notice, Unity Bank shareholders will decide on September 26 whether to approve the scheme of merger. The outcome will determine the fate of the lender.

If sanctioned, the transaction will see Unity Bank’s entire share capital cancelled, effectively dissolving the institution. This way, Providus Bank Limited’s certificate of incorporation will become that of the enlarged entity. The merger will combine the assets, liabilities, and undertakings of both banks into a single financial institution.

As part of the scheme consideration, Unity Bank shareholders are offered two options: receive N3.18 in cash for every Unity Bank share held. The other option is an equity swap of 18 Providus Bank ordinary shares of N0.50 each in exchange for every 17 Unity Bank shares.

Other resolutions to be considered include:

That all legal proceedings involving Unity Bank will continue under the name of Providus Bank once the court sanctions the merger.

That Unity Bank’s directors be authorised to consent to modifications required by regulators, including the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC).

That solicitors to Unity Bank seek the necessary court orders to give full effect to the merger.

The court has appointed Unity Bank’s Board Chairman, Hafiz Mohammed Bashir, or in his absence, Managing Director Ebenezer A. Kolawole, to preside over the meeting at OOPL Hotel, Abeokuta. Shareholders may vote in person or by proxy, with approval requiring a statutory majority representing not less than three-quarters in value of shares held.

If approved, the merger would represent not just the end of Unity Bank as a standalone institution. It will also see the expansion of Providus Bank into a larger, consolidated financial player, potentially reshaping Nigeria’s mid-tier banking landscape. (BusinessDay)

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