United & Ajod Insurance Get Final Approval for Merger; Ajad Shrestha To Work as Chairman of Merged Company
Wed, May 24, 2023 11:49 AM on Latest, Merger/Acquistion,
The final approval for merger between United Insurance Company (Nepal) Limited (UIC) and Ajod Insurance Limited (AIL) has been granted.
Following the approval, the non-life insurance companies have decided to commence joint operation from coming Sunday, Jestha 14.
'United Ajod Insurance' has been agreed upon as the name of the company formed after the merger.
In line with the recommendation received from Due Diligence Auditor, the swap ratio between UIC and AIL will be 82.5, implying that the number of shares of AIL shareholders will decrease by 17.5% in the newly merged company.
The current Chairman of Ajod Insurance Mr Ajad Shrestha will be the Chairman of the United Ajod Insurance, the new company. Meanwhile, Shrawan Rawal will take the responsibility as the CEO.
Similarly, incumbent CEO of Ajod Insurance will be appointed as the Deputy CEO of the merged company.
The present share capital of AIL and UIC is Rs. 1 Arba and Rs. 1.07 Arba respectively.
Earlier, United Insurance Company and Ajod Insurance Company haD entered into a MoU for a merging on Poush 27, 2079. Later, both UIC and AIL had endorsed merger-related agreement at their respective SGMs on Baisakh 25, 2080.
Previously, Ajod Insurance and Prabhu Insurance Company Limited (PRIN) had approved the draft agreement of Memorandum of Understanding (MoU) regarding the merger and the MoU had been signed on 32 Ashad, 2079. However, the merger agreement had been breached following which AIL signed an agreement to merge with UIC.
According to the source, the merger of AIL with PRIN had been broken because of disagreement in the swap ratio.
