SHAREHOLDERS REACTIONS TO THE MERGER OF UNITY BANK PLC AND PROVIDUS BANK
1. Merger Approval: The Central Bank of Nigeria (CBN) has approved the merger of Unity Bank Plc and Providus Bank. This decision is in accordance with Section 42 (2) of the CBN Act, 2007. The CBN also announced a financial support package of NGN 700 billion for the merger.
2. Shareholder Reactions:
- Moses Igbrude (National Coordinator, Independent Shareholders Association of Nigeria): Igbrude supports the merger, noting it is a preferable alternative to liquidation, which could be less beneficial for investors. He commended the CBN for its support and urged transparency and proper supervision throughout the merger process.
- Mrs. Bisi Bakare (National Coordinator, Pragmatic Shareholders Association of Nigeria): Bakare argued that Unity Bank and Heritage Bank are not comparable due to different circumstances and governance structures. She supports the CBN's decision and believes it is well-informed.
- Tony Omojola (Immediate past National Coordinator, Independent Shareholders Association of Nigeria): Omojola agreed that Unity Bank's situation is different from Heritage Bank's. He believes the merger is a better option than further liquidation.
- Mathew Akinlade (President, Noble Shareholders’ Solidarity Association): Akinlade criticized the CBN for seemingly favoring Unity Bank, suggesting that the same approach might have saved Heritage Bank if applied. He called for fairness in regulatory decisions.
- Eric Akinduro (Chairman, Ibadan Shareholders Zone): Akinduro praised the CBN for its decision, arguing that it helps stabilize the financial sector. He highlighted Unity Bank's better financial health compared to Heritage Bank.
3. Context: Earlier in June, the CBN revoked Heritage Bank's license, citing systemic failure, and appointed the Nigerian Deposit Insurance Corporation as its liquidator. This action contrasts with the merger approval for Unity Bank and Providus Bank, reflecting differing approaches to dealing with struggling financial institutions.
4. Outlook: The CBN’s support for the merger and its significant financial backing signal a commitment to stabilizing and strengthening the banking sector, while also aiming to restore investor confidence.
1. Merger Approval: The Central Bank of Nigeria (CBN) has approved the merger of Unity Bank Plc and Providus Bank. This decision is in accordance with Section 42 (2) of the CBN Act, 2007. The CBN also announced a financial support package of NGN 700 billion for the merger.
2. Shareholder Reactions:
- Moses Igbrude (National Coordinator, Independent Shareholders Association of Nigeria): Igbrude supports the merger, noting it is a preferable alternative to liquidation, which could be less beneficial for investors. He commended the CBN for its support and urged transparency and proper supervision throughout the merger process.
- Mrs. Bisi Bakare (National Coordinator, Pragmatic Shareholders Association of Nigeria): Bakare argued that Unity Bank and Heritage Bank are not comparable due to different circumstances and governance structures. She supports the CBN's decision and believes it is well-informed.
- Tony Omojola (Immediate past National Coordinator, Independent Shareholders Association of Nigeria): Omojola agreed that Unity Bank's situation is different from Heritage Bank's. He believes the merger is a better option than further liquidation.
- Mathew Akinlade (President, Noble Shareholders’ Solidarity Association): Akinlade criticized the CBN for seemingly favoring Unity Bank, suggesting that the same approach might have saved Heritage Bank if applied. He called for fairness in regulatory decisions.
- Eric Akinduro (Chairman, Ibadan Shareholders Zone): Akinduro praised the CBN for its decision, arguing that it helps stabilize the financial sector. He highlighted Unity Bank's better financial health compared to Heritage Bank.
3. Context: Earlier in June, the CBN revoked Heritage Bank's license, citing systemic failure, and appointed the Nigerian Deposit Insurance Corporation as its liquidator. This action contrasts with the merger approval for Unity Bank and Providus Bank, reflecting differing approaches to dealing with struggling financial institutions.
4. Outlook: The CBN’s support for the merger and its significant financial backing signal a commitment to stabilizing and strengthening the banking sector, while also aiming to restore investor confidence.