Swap Ratio of Global IME and Bank Of Kathmandu Fixed at 1:1; Joint Operation to Commence Soon

The appraiser assessed the assets, liabilities, and transactions of the Bank of Kathmandu Limited (BOK) and Global IME Bank Limited (GBIME) from the 237th meeting of the Board of Directors held on Kartik 24 for the purposes of merger and acquisition.

Hence, the share swap ratio recommended by various other parties as well as Due Diligence Audit is fixed at ratio of 1:1.

There will be 5 Board of Directors from GBIME including Chandra Prasad Dhakal and 2 from  BOK’s side in the merged entity. 

The merged company, Global IME BOK Limited, will be in operation as a result of previous mergers with 21 banks and financial institutions, which includes 5 ‘A-class’ Commercial banks, 10 Development banks, and 6 Finance Companies.

The combination of Global IME Bank and BOK will result in Nepal's largest commercial bank. Global IME had previously amalgamated two commercial banks, Commerz & Trust and Janata Bank Limited. Global IME Bank has also amalgamated with a dozen or so other BFI's and commercial entities.

Lumbini Bank was merged into BOK in 2073 BS with a ratio of 100 to 82.81. Following that, the bank's board of directors consisted of five BOK directors and four Lumbini directors.

Recently, GBIME proposed a 13.6% dividend for the fiscal year 2078/79. The bank proposed a 10.6% cash dividend and a 3% bonus shares from the paid-up capital.

Whereas, BOKL proposed a 20.95% dividend for the fiscal year 2078/79. In which 14.95% consisted of cash dividend and 6% consisted of bonus shares.