Unity Bank Plc says shareholders have approved its merger with Providus Bank Limited.
The approval was granted at a recent general meeting held in Abeokuta on September 26, according to a statement by Alabi Williams, company secretary, on Monday.
It was learnt that the general meeting was held following a court order.
Under the scheme, all assets, liabilities, and undertakings of Unity Bank will be transferred to Providus Bank, while all legal proceedings involving Unity Bank will continue in the name of Providus Bank after court sanction.
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As part of the consideration, the statement said Unity Bank shareholders will either receive N3.18 per share or be allotted 18 ordinary shares of Providus Bank for every 17 shares previously held in Unity Bank.
“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,” the statement reads.
“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.
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“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.”
The bank also said the scheme remains subject to the sanction of the federal high court, as well as approvals from the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC).
In August 2024, the CBN approved a financial package of N700 billion to support the proposed merger between Unity Bank and Providus Bank.
The CBN had said the bailout was a 20-year term loan that is intended to guarantee the merged entity’s operating stability.
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