Share Trading of Global IME Bank and Bank of Kathmandu Released on NEPSE

Nepal Stock Exchange (NEPSE) has issued a circular stating that the trading of securities for the Global IME Bank Limited (GBIME) and Bank of Kathmandu Limited (BOKL) has opened to the general public, except for Basic shareholders of both banks.

A few months back, Global IME Bank and Bank of Kathmandu signed  a merger agreement at a swap ratio of 1:1. Following the merger, the bank became one of the biggest commercial banks of Nepal with a share capital of Rs. 57 Arba.

The trading of shares was halted for both banks from October 15, 2022. From tomorrow, December 7, 2022, the share trading of both banks will resume on NEPSE. 

Also, GBIME has proposed a 13.6% dividend for the fiscal year 2078/79. Whereas, BOKL has proposed a 20.95% dividend for the fiscal year 2078/79.

As of writing, the last trading price (LTP) of GBIME and BOK is Rs. 251 and Rs. 227, respectively. 

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.