Nabil Bank and United Finance Call SGM to Endorse Acquisition and Share Swap Ratio
Fri, Jun 4, 2021 10:33 AM on AGM/Special AGM, Merger/Acquistion, Latest,
Nabil Bank and United Finance have called their respective SGM on 5th Ashad, 2078. The primary agenda is to endorse the acquisition of the latter by the former.
Industry giant Nabil Bank signed an acquisition agreement with United Finance Limited on Friday, Baisakh 17, in a program held in the commercial bank's office. The agreement was signed by Uday Krishna Upadhyaya, coordinator of the merger committee on behalf of Nabil Bank, and Manish Khemka, member of the merger committee on behalf of United Finance.
As per the agreement, a merger and acquisition agreement has been signed to maintain the share swap ratio of 35 shares of Nabil Bank equating to 100 shares of United Finance. Their respective SGM will endorse this share swap ratio and other preliminary processes. NABIL has an LTP of Rs. 1,309 while UFL has an LTP of Rs. 423.
Following the acquisition, it has been agreed that all of United Finance’s business transactions will be in the name of Nabil Bank and the Bank’s current board members will remain as the board of directors.
After the acquisition, the Bank’s paid-up capital will increase to NRs. 13.85 billion. Likewise, the Bank’s branch network will increase to 147 with 37 branches located within Kathmandu valley and the total number of ATMs will be 190. As a result of the acquisition, Nabil Bank’s deposit portfolio will increase to NRs. 216 billion and loan portfolio will increase to NRs. 201 billion (as per 3rd quarter’s financial result). With this acquisition, Nabil Bank will enter the market with a new strategy through its innovative services and additional branch network.
Jestha 28 is the book closure date for the companies' SGM. Investors maintained before that day are eligible to attend the meetings. Trading of the finance company has been halted after the acquisition agreement.
