Share Trading of PLI, VLBS, NSLB, LBL and SRBL Halted for Merger Related Process; ALBSL and RULB for Acquisition

The share/securities trading of Prabhu Life Insurance Limited (PLI), Vijaya Laghubitta Bittiya Sanstha Limited (VLBS), Naya Sarathi Laghubitta Bittiya Sanstha Limited (NSLB), Laxmi Bank Limited (LBL) and Sunrise Bank Limited (SRBL) has been halted for merger related processes. Moreover, the share trading of Asha Laghubitta Bittiya Sanstha Limited (ALBSL) and Rastra Utthan Laghubitta Bittiya Sanstha Limited (RULB) has been stopped for acquisition of former by the latter.

In different press releases issued by the Nepal Stock Exchange (NEPSE) dated Ashad, 28, it informed of the same.

The securities trading of PLI has been halted in line with the existing merger related laws from Ashad 29, 2080.

Earlier, Prabhu Life Insurance Limited (PLI) and Mahalaxmi Life Insurance Limited (MLICL) had recently concluded the final procedure for merger. The companies had signed a merger deal at a swap ratio of 1:1.

"Prabhu Mahalaxmi Life Insurance Limited" had been agreed upon as the name of the new company that will be formed as a result of the merger. The companies signed the Memorandum of Understanding (MoU) on Ashad 30, 2079.

The companies have begun the joint business on Ashad 29, 2080 i.e. July 14, 2023.

The paid-up capital of PLI at present is Rs. 2,196,000,000. Meanwhile, the paid-up capital of MLICL is Rs. 2,100,000,000. The total paid-up capital of the newly merged company is Rs. 4.29 Arba.

PLI declared 9.8% bonus shares worth Rs. 19.60 crores and 0.5158% cash dividend worth Rs. 1.03 crores for the Fiscal Year 2077/78.

In the same manner, the share trading of NEPSE-listed commercial banks, namely--Laxmi Bank Limited (LBL) and Sunrise Bank Limited (SRBL), has been halted from Ashad 29, for merger between the two.

Following the completion of the merger, the two entities have begin joint transaction from Ashad 29, 2080 under the name Laxmi Sunrise Bank Limited. For the same, all branch offices of both institutions had remained closed for 2 days i.e. 27th and 28th Ashad, for data migration and other purposes.

In line with the recommendation received from Due Diligence Auditor, the banks have agreed to merge at a swap ratio of 1:1.

The paid-up capital of LBL was Rs. 11.55 Arba whereas the paid-up capital of SRBL was Rs. 10.11 Arba. The total paid-up capital has reached Rs. 21.66 Arba after the merger.

Additionally, the securities trading of Vijaya Laghubitta Bittiya Sanstha Limited (VLBS), Naya Sarathi Laghubitta Bittiya Sanstha Limited (NSLB) has been halted for conducting merger related processes with effect from Ashad 31, 2080, according to NEPSE.

Previously, according to the special resolution passed by the AGMs of both companies held separately on 28th Chaitra, 2079 it had endorsed the swap ratio of 1:1.

"Vijaya Laghubitta Bittiya Sanstha Limited" has been agreed upon as the name of the new company that will be formed as a result of the merger and the integrated business will be carried out from 31st Ashad, 2080.

The current paid-up capital of VLBS is Rs. 38.4 Crores and that of NSLB is Rs. 36.1 Crores. The total paid-up capital will reach Rs. 74.5 Crores after the merger.

Lastly, the share trading of Asha Laghubitta Bittiya Sanstha Limited (ALBSL) and Rastra Utthan Laghubitta Bittiya Sanstha Limited (RULB) is to be halted from Ashad 31, 2080, as informed by NEPSE.

In the recent past, the Memorandum of Understanding (MoU) agreement had been signed between the two companies on Chaitra 29, 2079. Earlier, both companies had called their respective SGM to endorse a share swap ratio of 1: 1 for the acquisition.

"Asha Laghubitta Bittiya Sanstha Limited" had been agreed upon as the name of the new company that will be formed as a result of the acquisition and the integrated business is to be carried out from 31st Ashad.

The current paid-up capital of RULB and ALBSL is Rs. 26 Crores and Rs. 38.16 Crores, respectively. Last year, RULB issued 8,50,000 units worth Rs 8.50 crore as Initial Public Offering to the general public. Also, ALBSL distributed a 5% dividend for the fiscal year 2078/79.

After the acquisition, the location of the central office of 'Asha Laghubitta Bittiya Sanstha Limited' will remain at Banepa, Kavrepalanchowk.