Mahuli Samudayik Laghubitta Bittiya Sanstha and Nava Kiran Laghubitta Bittiya Sanstha sign Memorandum of Understanding to merge

Mahuli Samudayik Laghubitta Bittiya Sanstha Limited (MSLB) and Nava Kiran Laghubitta Bittiya Sanstha Limited have signed the Memorandum of Understanding (MoU) to enter into merger.

Mahuli Laghubitta Bittiya Sanstha is a public limited company, operating in 15 districts with its registered office in Mahuli, Saptari. Similarly, Nava Kiran Laghubitta is a national level microfinance company with registered office in Dhulikhel, Kabreplanchowk.

As per the MoU, the merged institution will operate under the name of Mahuli Laghubitta Bittiya Sanstha as a national level microfinance company. The registered office of the merged entity will be at Mahuli, Saptari. The registered office of Nava Kiran Laghubitta will be made the provincial office for Province 3.

The estimated cost of the merger is Rs.750,000 which the merging parties have agreed to bear 50% each. In case of any deviation, the same will approved by BOD of both the parties. The parties aim to complete the merger process by the end of Baisakh 2077.

The parties have agreed to appoint a valuator for the purpose of Due Diligence Audit. It is expected that the swap ratio won’t go lower than 100:95. If the determined swap ratio deviated by more than 10% for any party, BOD of both the parties will decide the share swap ratio through mutual consent.