Mega Bank and Tourism Bank’s merger finally approved; approx. 450 days of frozen shares finally to be traded again

Mega Bank and Tourism Development Bank had signed the MoU for the Merger, and on account of the same the trading of shares of both the institutions was halted from Magh 9, 2073. The last trading price of Mega and tourism Bank were Rs 458 and Rs 427 respectively in Magh 2073 at a time when NEPSE was in a bearish mood with the index hovering at 1,470. As of now, it has been almost 450 days.

After the trading had halted at NEPSE, Mega Bank had capitalized its 13.25% bonus shares and 65% right shares. On the other end, Tourism Development Bank has also capitalized 19.80% bonus shares and 100% right shares. Shareholders of both the institutions have already received the allotted right and bonus shares in their respective demat accounts even after completion of the tedious process of auctioning the unsubscribed right shares. However, the shareholders hadn’t been able to trade the allotted shares.

Finally on a Board Meeting held at Nepal Rastra Bank (NRB) on Baisakh 07, 2074 the approval was granted to finalize the merger process. The official letter of approval from NRB is expected to come with a day or two and after that the bank will release a 21 days’ notice for formal merger.

The merger has been finalized at Rs. 100 per share of Mega Bank and Rs. 95 per share for Tourism Development Bank.