Merger Agreement Between Prabhu Life Insurance and Mahalaxmi Life Insurance Finalised; Joint Transaction To Begin From Ashad 29

The final procedure for the merger between Prabhu Life Insurance Limited (PLI) and Mahalaxmi Life Insurance Limited (MLICL) has been recently completed. The company had signed a merger deal at a swap ratio of 1:1.

"Prabhu Mahalaxmi Life Insurance Limited" has been agreed upon as the name of the new company that will be formed as a result of the merger. The companies signed the Memorandum of Understanding (MoU) on Ashad 30, 2079.

Likewise, in accordance with the letter from the Nepal Insurance Authority and the Office of the Registrar of Companies, the merger has also gained final permission. Therefore the companies will start the joint business on Ashad 29, 2080 i.e. July 14, 2023.

The paid-up capital of PLI at present is Rs. 2,196,000,000. Meanwhile, the paid-up capital of MLICL is Rs. 2,100,000,000. The total paid-up capital of the newly merged company will be Rs. 4.29 Arba.

PLI declared 9.8% bonus shares worth Rs. 19.60 crores and 0.5158% cash dividend worth Rs. 1.03 crores for the Fiscal Year 2077/78.