Nepal Rastra Bank Grants In-Principle Consent to the Merger Between Sana Kisan Bikas and RMDC Laghubitta

Nepal Rastra Bank (NRB) has granted in-principle consent to the merger between Sana Kisan Bikas Laghubitta Bittiya Sanstha Limited (SKBBL) and RMDC Laghubitta Bittiya Sanstha Limited (RMDC).  The merger agreement between the companies was signed on Bhadra 31, 2079. The share swap ratio between Sana Kisan and RMDC is also set at 100:87. As a result, investors who now own 100 shares of RMDC Microfinance would receive 87 shares of the merged company.

When approving the merger of these two microfinance organizations in principle, Rastra Bank imposed the requirement that both companies integrated capital ratios meet the requirements set forth by the National Bank.

Both institutions must also follow all requirements given by the respective supervisory departments of the National Bank during inspection and supervision, and the companies must deliver any pertinent information to these departments within the allotted time frame.

Likewise, it has been agreed to appoint 2-2 people from the promoter group of both institutions, 1-1 individual from the general group and 1 individual as expert director, according to the provisions of the Bank and Financial Institutions Act, 2073.

It is also mentioned in the memorandum of understanding that the name of the integrated financial institution after the completion of the merger will be 'Sana Kisan RMDC Laghubitta Bittiya Sanstha Limited'.

The current paid-up capital of SKBBL is Rs. 1.56 Arba and that of RMDC is Rs. 1.24 Arba and the Last Trading Price (LTP) of the companies is Rs. 1266 and Rs. 1076, respectively.

Merger Details