List of Companies that are in the Process of Merger and Acquisition; When Will Their Share Trading Resume?

The Securities Board (SEBON), enforcing a directive on listed companies engaging in mergers and acquisitions, has maintained the requirement that share transactions be halted for a maximum of 15 working days after the combined entity commences a joint business transaction. The board has granted the post-unification period of time due to the procedures of re-registration, reconciliation, dematerialization, and listing of the shares.

The company currently has to halt share transactions once the unification process has begun. In order to prevent any out-of-the-ordinary clearing and settlement of share trading for listed businesses that were engaged in merger or acquisition activity, SEBON had maintained the rule.

The board also mandated that companies considering mergers and acquisitions perform integrated business within 6 months in the recommendations. 

Many companies went into the merger or acquisition (M&A) process last year either due to the regulations set up by the government or to create a value viz to increase the wealth of their shareholders.

Here, we see the list of companies (sector-wise) that are under the M&A process.

Now, the share trading of all companies that has been halted for the purpose of merger and acquisition will resume soon. However, share transactions involving anyone other than the basic shareholders of companies that are merging, amalgamating, or acquiring other organizations is not included in the provision.

As a result, in order for trading to resume, companies that are in the process of merging or acquiring another company must send an official letter to the Nepal Stock Exchange (NEPSE) outlining the names of their basic shareholders. Following this, NEPSE will resume trading for other shareholders of the company.