Unity Bank shareholders to approve N3.18 payout, scheme at court meeting

Unity Bank Plc shareholders are preparing to decide on a proposed merger with Providus Bank Limited, which offers them either N3.18 per share or 18 Providus Bank shares for every 17 Unity Bank shares they currently own.

The Federal High Court in Lagos has ordered a shareholder meeting for 26 September 2025 to consider and vote on the proposed payouts, the transfer of assets and liabilities, and other central provisions of the merger scheme.

The order, issued by Hon. Justice D. I. Dipeolu, also authorises Unity Bank’s directors to make any necessary modifications to the scheme, subject to guidance from the Securities and Exchange Commission (SEC), the Central Bank of Nigeria (CBN), or the court.

Under the proposed merger, all Unity Bank assets, liabilities, properties, intellectual property rights, and ongoing legal proceedings will transfer to Providus Bank. The scheme includes provisions to cancel Unity Bank’s share capital, effectively dissolving the bank without winding it up, with the enlarged entity operating under Providus Bank’s existing certificate of incorporation.

Shareholders will also vote on granting directors the authority to take all actions necessary to finalise the merger and to empower Unity Bank’s solicitors to seek court approval for its sanction, should it be required.

Talks over the merger have been under way since 2024, backed by a capital injection from the CBN to support the transition.