Citizens Bank to acquire Tinau Mission Development Bank in a potential swap ratio of 100:96

In accordance with the directive on Merger and Acquisition of Banks and Financial Institutions, Citizens Bank is set to acquire Tinau Mission Development Bank.

Citizens Bank International Limited, headquartered at Narayanhiti Path, Kathmandu, has signed a preliminary agreement on Kartik 01 to acquire Tinau Mission Development Bank. Tinau Mission Development Bank is a "B" class financial institution headquartered in Butwal.

The companies have agreed to a potential swap ratio of 100:96. The final swap ratio will be determined only after the Due Diligence Agreement. If the same swap ratio is finalized, investors with 100 shares of Tinau Mission Development Bank will get 96 shares of Citizens Bank. However, as mentioned earlier, the ratio might change after DDA. 

Swap ratios aim to ensure that the shareholders of the companies are not impacted by the merger or acquisition. Also, they make sure that the shareholders maintain the same value as they did before, with the hopes of further growth through the synergies of a merged company. This is why swap ratios are important.

Furthermore, Tinau's promoter shareholding is currently maintained at 63.56% of the total shares. If approval is received from Nepal Rastra Bank, both the companies are ready to convert the shares of Tinau Mission Development Bank and have only 51% promoter shareholding before the acquisition. 

Meanwhile, Tinau Mission Development Bank's trading will be halted from today. 

As of writing, Tinau Mission Development Bank has the last close price at Rs. 197 per share and Citizens Bank's last closing price is Rs. 215 per share.

Detail Agreement: