Final Merger Agreement Between National and Summit Microfinance Penned

The final agreement between National Microfinance Laghubitta Bittiya Sanstha Limited (NMFBS) and Summit Laghubitta Bittiya Sanstha Limited (SMFDB) has been signed on Wednesday.

In a press release issued by National microfinance to notify of the same, it stated that following approval of proposal of merger at the Special General Meeting (SGM) held on 2080/03/03, and as decided by the 151th meeting of the Board of Directors (BODs) organized on 2080/03/05, the final merger agreement between the two companies were signed on 2080/03/06.

The SGM passed a resolution regarding evaluating the Due Diligence Audit, and Memorandum of Understanding and endorse a share swap ratio of 1:0.73 for the merger between National Microfinance Laghubitta and Summit Laghubitta Bittiya Sanstha Limited (SMFDB), implying that for every 100 units of Summit’s shares, the shareholders will get 73-unit shares of National Microfinance.

The meeting also approved a proposal to start the joint transaction under the name "National Summit Microfinance Laghubitta" after the successful merger.

Currently, National Microfinance has a paid-up capital of Rs. Rs. 674,676,300 while Summit microfinance maintains a paid-up capital of Rs. Rs. 561,000,000.

According to the notice of National Microfinance (NMFBS) published in NEPSE, states after the evaluation of the Due Diligence Audit (DDA) of the companies, the share swap ratio for the merger has been changed from 100:82.