For the Purpose of Joint Integrated Transaction, Share Trading of Sagarmatha Lumbini Insurance Company To be Halted from Falgun 29

The final procedure for a merger between Lumbini General Insurance Limited (LGIL) and Sagarmatha Insurance Company Limited (SIC) has been recently completed. Hence, as per Section 9 (2) of the Merger and Acquisition Directive 2079, Act, the Nepal Stock Exchange (NEPSE) has issued a circular regarding the suspension of share transaction of the company in accordance with Section 9 (3) of the Directory 2079.

SIC and LGIL had signed a merger deal at a swap ratio of 100:80. As per the merger agreement, "Sagarmatha Lumbini Insurance Company Limited" has been agreed upon as the name of the new company that will be formed as a result of the merger. The companies will start the joint business on Falgun 29.

Following the merger of SIC and LGIL, the joint paid-up capital of the company will be Rs. 2.62 Arba after adjustment and distribution of the proposed bonus shares for the Fiscal Year 2078–2079.

For FY 78/79, SIC proposed to distribute 12.40% bonus shares and 0.6526% cash dividend, whereas LGIL proposed 6.99% bonus shares and 0.3679% cash dividend.