Share Trading of Siddhartha Insurance Limited (SIL) and Nepal Credit & Commerce Bank (NCCB) has been Released

The share trading of Siddhartha Insurance Limited (SIL) and Nepal Credit & Commerce Bank (NCCB) shareholders, excluding the basic shareholders, is released under Section 13 (1) of the Merger and Acquisition Guideline, 2079.

The secondary market trading of securities for SIL had been halted from July 11 as SLI is merging with by Premier Insurance Company Nepal (PICL). As of writing, Siddhartha Insurance LTP is at Rs 543.70.

Siddhartha Insurance Company and Premier Insurance Company Nepal have inked a merger agreement in a share swap ratio of 1:1.

In the similar vein, NCCB and Kumari Bank Limited (KBL) signed a Memorandum of Understanding (MoU) for the merger at a swap ratio of 1:1. The LTP of NCCB as of 25 September, 2022 is Rs. 184. 

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 companies that were engaged in merger or acquisition activity, SEBON maintained the rule. Following SEBON's announcement, Nepal Stock Exchange has begun resuming trading of numerous companies whose shares had previously been suspended during a merger or acquisition process.