Trading of Securities For Century Commercial Bank Limited (CCBL) Released from Tomorrow

The share trading of Century Commercial Bank Limited (CCBL) 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 Century Commercial Bank Limited had been halted from 16 Shrawan as CCBL is being acquired by Prabhu Bank Limited (PRVU).

Since this is an amalgamation in the nature of purchase or acquisition, only Century Bank share trading is halted and the last trading price of the said bank is Rs 193.

The current paid-up capital of CCBL is Rs. 9.55 Arba whereas the paid-up capital of PRVU is Rs. 12.07 Arba. Hence, after starting an integrated business, the total paid-up capital of Prabhu Bank Limited will be Rs. 21.62 Arba, surpassing the total paid capital of Himalayan Bank after the acquisition of Civil Bank. 

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.