Merger: Unity Bank shareholders to approve N3.18 payout, scheme at court docket assembly 

Underneath the proposed merger with Providus Bank Restricted, Unity Bank shareholders are set to obtain both N3.18 per share or 18 Providus Bank shares for each 17 Unity Bank shares they at the moment maintain.

The Federal Excessive Court docket in Lagos ordered a shareholder assembly for September 26, 2025, the place shareholders will assessment and vote on the proposed payouts, the switch of belongings and liabilities, and different key components of the merger scheme.

Issued below the hand of Hon. Justice D. I. Dipeolu, the order additionally empowers Unity Bank’s administrators to make any essential changes to the scheme as required by the Securities and Change Fee (SEC), the Central Bank of Nigeria (CBN), or the court docket.

Underneath the merger, all of Unity Bank’s belongings, liabilities, properties, mental rights, and ongoing authorized proceedings will probably be transferred to Providus Bank.

The scheme additional proposes canceling Unity Bank’s share capital, successfully dissolving the bank with out winding it up, with ProvidusBank’s certificates of incorporation protecting the enlarged entity.

Shareholders may also vote on granting the administrators the authority to take all essential steps to implement the scheme and permit Unity Bank’s solicitors to hunt the court docket’s approval to sanction it, if required.

The merger discussions have been ongoing since 2024, supported by a capital injection from the Central Bank of Nigeria to facilitate the method.

Backstory 

On August 6, 2024, the Central Bank of Nigeria authorized the merger of Unity Bank and ProvidusBank, and the next day approved a N700 billion bailout mortgage to assist the recapitalization of the brand new banking entity.

This marked the primary Nigerian banking merger in 5 years and was projected to create a community of 231 branches nationwide, with the CBN’s funding making certain a smoother transition.

• A good portion of the bailout was earmarked to settle N303.7 billion of Unity Bank’s present obligations, together with N92 billion owed to First Bank of Nigeria.
• Moreover, N51.7 billion owed to the CBN below the Anchor Borrower Scheme and N135 billion attributable to NIRSAL (Nigeria Incentive-Based mostly Threat Sharing System for Agricultural Lending) have been additionally lined.
• The remaining N392.3 billion was to be invested in a 20-year FGN bond, qualifying as tier-2 capital for the merged bank.

The upcoming assembly on September 26, 2025, will give shareholders the chance to formally think about and approve the preparations outlined by the court docket as a part of the merger scheme.

What to know 

• The outcomes of the shareholder assembly will probably be submitted to the court docket by the Chairman, Mr. Hafiz Mohammed Bashir, the Managing Director, Mr. Ebenezer A. Kolawole, or some other director appointed by the shareholders.
• Voting will probably be carried out by ballot, permitting shareholders to vote in particular person or authorize a consultant to vote on their behalf. For joint shareholders, voting rights will comply with the order of seniority as listed within the firm’s register of members.
• Shareholders wishing to submit their votes or directions forward of the assembly should achieve this by way of the corporate secretary by September 23, 2025.