Nigerian banks, Unity Bank and Providus Bank, explore the possibility of a “Business Combination” agreement

Date:

Unity Bank, a publicly listed Nigerian bank, is currently in talks with Providus Bank regarding a potential business combination.

According to sources familiar with the matter speaking to Nairametrics, discussions have been ongoing for weeks, although opinions on the progress vary.

Some suggest the talks are in the advanced stages, hinting at uncertainty.

Sources within Providus Bank even suggest an “acquisition” of Unity Bank, adding a more definitive direction to the negotiations. However, formal approval from the central bank is still pending.

Both banks believe a business combination would be mutually beneficial, considering their distinct business models.

Unity Bank, with its extensive reach and balance sheet, contrasts Providus Bank’s modernity, agility, and financial stability.

Despite ongoing discussions, the central bank’s formal endorsement is awaited.

Unity Bank has faced acquisition speculation before and recently reported a loss before tax of N47.9 billion, with negative equity of N190.2 billion, potentially impacting shareholders in a business combination.

In contrast, Providus Bank reported a strong net asset of N45.2 billion in its 2022 audited financial statements.

Unity Bank’s balance sheet is N423.3 billion, while Providus Bank’s is N735.8 billion, with customer deposits of N504 billion compared to Unity Bank’s N434 billion.

As of now, the Nigerian Exchange Group (NGX) hasn’t received official notification of any business combination, and no press release has been published.

Unity Bank’s publicly listed shares closed at N1.07 per share, showing a 9% increase on Wednesday and a remarkable 122% growth over the past year.

 

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Subscribe

spot_imgspot_img

Popular

More like this
Related

Bidemi Rufai released from U.S. prison, faces deportation after multimillion-dollar fraud conviction

Bidemi Rufai released from U.S. prison, faces deportation after...

Appeal Court Sacks MC Oluomo As NURTW President

The Court of Appeal, Abuja Division, has declared Alhaji...

Tears as Lagbaja buried in Abuja, gets posthumous national honour

Emotions ran high as the Chief of Army Staff,...

MultiChoice writes off $21m deposited in defunct Heritage Bank

MultiChoice Group Limited has written off $21m deposited in...