The Chairman of Unity Bank, Hafiz Bashir, has revealed that the 34 per cent stake of Asset Management Corporation of Nigeria, AMCON, in the bank was sold to an existing shareholder of the lender, not ProvidusBank.
Bashir made this clarification at the court-ordered shareholders’ meeting held on Friday in Abeokuta, Ogun state capital.
It was, however, gathered that the identity of the shareholder, who acquired the shares would be veiled in the coming days.
Moreover, it had been reported that AMCON divested its 34 per cent of Unity Bank stake to Providus Bank in a N6.5bn deal. The divestment, which involved four billion Unity Bank shares, was executed at N1.66 per share through a crossed deal on the trading floor of the Nigerian Exchange Limited on Thursday.
The transaction was carried out in three separate deals, a day before Unity Bank’s court-ordered meeting, where shareholders are expected to vote on the merger scheme.
The bank clarified that the shares were acquired by an existing investor and not by Providus Bank Limited, which is currently pursuing a merger with Unity Bank.
The Chairman of Unity Bank Plc, Hafiz Bashir, while speaking on the development, asserted that the acquisition of AMCON’s 34 per cent stake by an existing shareholder further strengthens confidence in Unity Bank’s future.
He said, “Alongside the merger with Providus Bank, this marks the beginning of a new chapter that will deliver greater value to shareholders, customers, and the Nigerian economy.”
Meanwhile, at the court-ordered meeting, shareholders approved the Scheme of Merger with Providus Bank Limited. Out of 295 shareholders who participated, 293 shareholders representing 99.32 per cent of the Bank’s shareholding (N4.4bn in value) voted in favour of the merger resolutions.
According to the terms of the Scheme, Unity Bank shareholders will receive N3.18 per share or be allotted 18 ordinary shares of N0.50 each in Providus Bank Limited (credited as fully paid) for every 17 ordinary shares of Unity Bank Plc held.
Upon completion, the entire share capital of Unity Bank will be cancelled, and the Bank will be dissolved without being wound up. At the same time, Providus Bank Limited will retain its certificate of incorporation as the enlarged bank.
Shareholders also authorised the Bank’s Directors and Solicitors to seek the necessary Court orders and take all actions required to give full effect to the Scheme.