IME General & Prudential Insurance Signs Final Merger Agreement At Swap Ratio of 1:1; New Company to be Named As IGI Prudential Insurance
Mon, Mar 20, 2023 11:10 AM on Latest, Merger/Acquistion,
IME General Insurance Limited (IGI) and Prudential Insurance Company Limited (PICL) sign a merger agreement and a 1: 1 swap ratio will be maintained to combine the two companies.
In a meeting of the Board of Directors convened on Sunday, Chaitra 5, 2079, IME General Insurance Limited (IGI) and Prudential Insurance Company Limited (PICL) reached an agreement for the purpose of the merger.
A share exchange ratio of 100:100 has been established between Prudential Insurance and IME General Insurance for the purposes of amalgamation and appraisal. It has been agreed that the new company will bear the name IGI Prudential Insurance Limited.
Hemraj Dhakal, chairman of IME General, and Vishal Agarwal, chairman of Prudential Insurance, inked the contract for merger. The current paid-up capital of IGI is Rs. 1.80 Arba, whereas the same of PICL is Rs. 1.22 Arba.
Non-life insurance companies have also been urged by the Insurance Board to raise the paid-up capital to Rs 2.5 Arba. Following the Insurance Board's judgment, the insurance companies have combined several strategies, including pursuing a merger, to meet that standard.
