Share Trading of Civil Bank Limited (CBL) has been Resumed

The share trading of Civil Bank Limited (CBL) shareholders, excluding the basic shareholders, is released under Section 13 (1) of the Merger and Acquisition Guideline, 2079.

Few months back, a Memorandum of Understanding (MoU) had been signed between the two pioneer banks of Nepal- Himalayan Bank Limited (HBL) and Civil Bank Limited (CBL).

Himalayan Bank had agreed to acquire Civil Bank at a swap ratio of 100: 81. For instance, if a shareholder in Civil Bank owned 100 shares, his share in the combined company would be reduced to 81 shares. 

Since this was an amalgamation in the nature of the acquisition, only Civil Banks’ share trading was halted on July 13, 2022. Likewise, the last trading price (LTP) of the company as on the date is Rs. 213. 

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.