NRB Grants In-Principle Consent for the Merger Between Swarojgar Laghubitta & Samata Gharelu Laghubitta

Nepal Rastra Bank has granted the in-principle consent for the purpose of a merger between SLBBL and SMATA.

In relation to the merger of Swarojgar Laghubitta Bittiya Sanstha Limited (SLBBL) and Samata Gharelu Laghubitta Bittiya Sanstha Limited (SMATA), it has been notified that in-principle consent has been granted for the merger by Nepal Rastra Bank (NRB).

Both institutions must convene their respective general meetings within three months of receiving theoretical consent, approve the special resolution relating to the merger at those meetings, and then submit a joint application to the NRB for final approval.

According to the instructions of NRB, both institutions' integrated capital ratios should be adequate when they submit to NRB for the merger's final approval. Likewise, the share capital of SLBBL and SMATA is Rs. 62.72 Crores and Rs. 49.41 Crores, respectively. Also, the Last Trading Price (LTP) of the companies as of March 14 is Rs 653 and Rs. 735.50, respectively. 

Furthermore, 15% bonus shares and a 3% cash dividend have been distributed by SMATA for the FY 2078/79 from the paid-up capital of Rs. 34.27 Crores.  

22% bonus shares worth Rs 11.31 crores and a 1.1579% cash dividend (including tax) worth Rs 59.52 lakhs have been proposed by SLBBL for FY 2078/79.

The Memorandum of Understanding (MOU) for the merger between SMATA and SLBBL was signed on Poush 18 but the swap ratios and other relevant information regarding the merger have not been finalized yet.