NEPSE Resumes Share Trading of Nepal Investment Bank and Mega Bank

Nepal Stock Exchange (NEPSE) has issued a circular stating that the trading of securities for the Mega Bank Nepal Limited (MEGA) and Nepal Investment Bank Limited (NIB) has opened to the general public, except for Basic shareholders of both banks.

A few months back, Nepal Investment Bank Limited and Mega Bank Nepal Ltd signed  a merger agreement at a swap ratio of 100:90. Following the merger, the bank became one of the biggest commercial banks of Nepal with a share capital of Rs. 32.81 Arba.

The trading of shares was halted for both MEGA and NIB from Jestha 30, 2079. From coming Tuesday, Mangsir 6, the share trading of both banks will resume on NEPSE. 

Securities Board (SEBON), enforcing a directive on listed companies engaging in mergers and acquisitions passed a requirement that share transactions shall be halted for a maximum of 15 working days after the combined entity commences a joint business transaction. The board has granted the post-unification period of time due to the procedures of re-registration, reconciliation, dematerialization, and listing of the shares.

The company currently has to halt share transactions once the unification process has begun. In order to prevent any out-of-the-ordinary clearing and settlement of share trading for listed company that were engaged in merger or acquisition activity, SEBON had maintained the rule.

NIB and MEGA are the first entities, whose share trading has been resumed despite the merged company net yet being listed on NEPSE.