Prabhu Bank After Successful Acquisition Commencing Joint Operation From Poush 26

After a successful merger & acquisition, Century Commercial Bank Limited (CCBL) and Prabhu Bank Limited (PRVU) will commence their joint operation from Poush 26, 2079 (10th January 2023). The joint operation will be carried out under the name "Prabhu Bank Limited".

The commercial banks received the final approval for the acquisition from Nepal Rastra Bank on Poush 19. Both banks signed MoU for acquisition on Shrawan 15, 2079. Since Century Commercial Bank is being acquired by Prabhu Bank the Due Diligence Audit has endorsed a share swap ratio of 100: 100 for the acquisition.

The paid-up capital of CCBL is Rs. 10 Arba whereas the paid-up capital of PRVU is Rs. 13.53 Arba according to the first quarter report of Fiscal Year 2079/80. Hence, after starting an integrated business, the total paid-up capital of Prabhu Bank Limited will be Rs. 23.53 Arba. Also, CCBL and PRVU endorsed dividends of 5% and 8% respectively for the Fiscal Year 2078/79. 

The share trading of "Prabhu Bank Limited" might get halted for 15 days from the date of commencement of integrated financial transactions, as per the guidelines for amalgamation and acquisition of companies that have registered securities issued by the Securities Board (SEBON) for the purpose of matching the shares of the target institution, re-registration of securities, dematerialization, and listing of securities.

As of writing, CCBL and PRVU have an LTP of Rs. 191.4 and Rs. 198.9 respectively.

Notice