Supreme Court approves merger of two banks
The Supreme Court has approved the merger between Providus Bank Limited and Unity Bank Plc, bringing an end to the legal dispute that had challenged the transaction.
The newly combined financial institution will operate under the name Providus-Unity Bank Limited.
The apex court dismissed an appeal filed by shareholders seeking to stop the merger, ruling that the case lacked merit.
A five-member panel led by Justice Tijani Abubakar also ordered the appellants to pay N10 million each to the respondents.
In its judgment, the court not only rejected the appeal but also cleared all remaining legal hurdles standing in the way of the consolidation.
The Supreme Court exercised its powers under the law to directly approve the merger and ordered that the process be completed within 10 days.
The ruling authorizes the transfer of all assets, liabilities and obligations of Unity Bank to Providus Bank in line with the approved merger arrangement.
The court also approved the share exchange plan for shareholders.
Under the arrangement, holders of 17 Unity Bank shares will receive 18 Providus Bank shares valued at 50 kobo each.
The approved share valuation was fixed at N3.18 per share.
As part of the merger process, the Supreme Court approved the dissolution of Unity Bank’s board without winding up the institution.
The dispute was brought before the courts by shareholders who opposed the merger.
The matter passed through the Federal High Court and the Court of Appeal before reaching the Supreme Court for final determination.
