Laxmi Bank (LBL) and Sunrise Bank (SRBL) Pen Final Merger Agreement
Mon, May 22, 2023 4:16 PM on Latest, Merger/Acquistion,
Two commercial banks, Laxmi Bank (LBL) and Sunrise Bank (SRBL) have signed the final merger agreement amidst a program organized on Monday.
The agreement was signed in the presence of representatives from both banks. Mr. Dinesh Poudyal, Director of Laxmi Bank and Mr. Er Bachh Raj Tater Director of Sunrise Bank signed the agreement on behalf of their respective banks.
In line with the recommendation received from Due Diligence Auditor, the banks have agreed to merge at a swap ratio of 1:1. ‘Laxmi Sunrise Bank Limited’ has been agreed upon as the name of the new entity formed after the merger.
It has been learned that Mr. Ajaya Bikram Shah, current CEO of Laxmi Bank will be the CEO of the merged bank. Meanwhile, the first meeting of the Board of Directors (BOD) of the merged entity shall elect the Chairman of the Board.
The final agreement will now be endorsed for approval from the respective general meetings of both banks. The merger is subject to approval from Nepal Rastra Bank (NRB) and Company Registrar’s Office.
Tentatively, the banks aim to provide combined services from Ashadh end of 2080.
Earlier, on Poush 25, 2079, LBL and SRBL had signed a Memorandum of Understanding (MOU) to undertake merger between the two banks amidst a ceremony.
Following the completion of the merger and subsequent joint operation, the number of commercial banks will reduce to 20.
