In a major development that signals a boost toward consolidation in Nigeria’s banking sector, a significant off-market transaction involving Unity Bank Plc was executed yesterday.

The deal, which occurred outside the Nigerian Exchange (NGX) trading floor, involved the transfer of over 4 billion ordinary shares of Unity Bank, marking one of the largest block trades in the financial sector in recent times.

Investigations by The Guardian revealed that a total of 4,001,368,233 units of Unity Bank shares were exchanged in three negotiated deals. The seller in the transaction was Cordros Securities Limited, acting on behalf of the Asset Management Corporation of Nigeria (AMCON) while the buyer was PAC Securities Ltd, understood to be executing the transaction on behalf of Providus Bank or a Special Purpose Vehicle (SPV) set up by the bank to facilitate the acquisition.

The shares were sold at a unit price of N3.18, valuing the transaction at approximately N12.72 billion. The size of the transaction represents a 34.22 per cent equity stake in Unity Bank, effectively transferring AMCON’s entire shareholding in the tier-2 lender to the new buyer.

This strategic divestment is significant not only in terms of market value but also for what it represents in the broader context of Unity Bank’s planned merger with Providus Bank.

The Guardian also learnt that this transaction is widely interpreted as part of the ongoing preparations for the merger between Unity Bank Plc and Providus Bank Limited, a deal that has been under regulatory and shareholder scrutiny in recent months.

As outlined in the scheme of arrangement guiding the merger, shareholders of Unity Bank are being offered two options: to either exit their holdings at a cash price of N3.18 per share, or to participate in a share exchange that grants them 17 Providus Bank shares for every 18 Unity Bank shares held.

The completion of this off-market transaction is seen as a critical milestone in the merger process. By acquiring AMCON’s stake, Providus Bank (or its proxy SPV) now gains a major foothold in Unity Bank, further consolidating its control and influence in shaping the post-merger entity.

AMCON’s exit, meanwhile, is in line with its ongoing efforts to divest from financial institutions and reduce its ownership in commercial banks, having played a stabilising role during Nigeria’s banking sector crisis over a decade ago.

Analysts described this development as a strong signal that the merger is not only advancing, but likely to reach completion in the near future. The deal provides Providus Bank with the structural leverage needed to fast-track integration and align both banks’ operations under a unified corporate vision.

For Unity Bank shareholders, this event underscored the importance of the choice now before them. The cash offer at N3.18 may appeal to those seeking immediate liquidity, especially given Unity Bank’s historical trading levels.

On the other hand, the share swap with Providus Bank may offer long-term investors an opportunity to participate in what could emerge as a stronger, better-capitalised financial institution in Nigeria’s evolving banking landscape.

This transaction marks a pivotal moment for Unity Bank and its future trajectory. With AMCON’s exit and Providus Bank’s increasing strategic involvement, the path toward a unified, restructured banking entity appears more certain than ever.