Citizens Bank (CZBIL) and Srijana Finance (SFFIL) Call SGM to Endorse Acquisition and Share Swap Ratio
Thu, May 27, 2021 12:28 PM on Latest, AGM/Special AGM, Merger/Acquistion,
Citizens Bank International Limited (CZBIL) and Srijana Finance Limited (SFFIL) have called their respective SGM on 27th Jestha to endorse the acquisition of the latter by the former.
The companies have signed the final agreement for the acquisition on Jestha 11. Citizens Bank International and Srijana Finance have signed a final acquisition agreement where the bank is acquiring the finance company in the share swap ratio of 100:95.
The bank aims to begin joint operation with the finance company after receiving the final approval from the Nepal Rastra Bank i.e. is expecting within the ongoing fiscal year. The trading of SFFIL was halted in NEPSE because the company had signed a Memorandum of Understanding (MoU) for merger and acquisition with Sunrise Bank Limited. Apparently, the deal with Sunrise Bank did not come to fruition.
The preliminary acquisition agreement was signed on Magh 28 between BoD of the bank Mr. Prabal Jung Pandey and BoD of the finance company Mr. Subash Acharya amid a program. SFFIL is a finance company with its central office in Bhanu Tole, Ward 09, Biratnagar. Meanwhile, Citizens Bank has its registered office in Narayanhiti, Kathmandu. The revamped bank will have a deposit figure of Rs 1.37 Lharba, a loan disbursement figure of Rs 1.21 Kharba, 189 branches in its network, and a paid-up value of Rs 12.58 Arba.
Citizens Bank has declared Jestha 21 as the book closure date for its SGM. Thus, investors maintained before that day can attend the meeting. Meanwhile, the trading of the finance company is halted.
