NRB Grants Final Approval For Merger Between National (NMFBS) and Summit Microfinance (SMFDB)

The Nepal Rastra Bank (NRB) has granted the final approval for merger between National Microfinance Laghubitta Bittiya Sanstha Limited (NMFBS) and Summit Laghubitta Bittiya Sanstha Limited (SMFDB).

In a press release issued by National Microfinance (NMFBS) on Sunday, the company informed of the same.

Earlier, National Microfinance's proposal for a merger was presented at the Special General Meeting (SGM) held on 2080/03/03. As decided by the 151st meeting of the Board of Directors (BOD) held on 2080/03/05, the final merger agreement between the two companies was signed on 2080/03/06.

The SGM had passed a resolution regarding evaluating the Due Diligence Audit, and Memorandum of Understanding and endorse a share swap ratio of 1:0.73 for the merger between National Microfinance Laghubitta and Summit Laghubitta Bittiya Sanstha Limited (SMFDB), implying that for every 100 units of Summit’s shares, the shareholders will get 73-unit shares of National Microfinance.

The meeting had also approved a proposal to start the joint transaction under the name "National Summit Microfinance Laghubitta" after the successful merger.

Currently, National Microfinance has a paid-up capital of Rs. Rs. 674,676,300 while Summit microfinance maintains a paid-up capital of Rs. Rs. 561,000,000.