Aarambha Chautari Laghubitta To Merge With CYC Nepal Laghubitta And Shaligram Laghubitta

September 27, 2020 | Investopaper

Aarambha Chautari Laghubitta has signed an agreement for merger/acquistion with CYC Nepal Laghubitta and Shaligram Laghubitta. The three microfinance signed M/A agreement on Ashwin 9, 2077.

After the merger agreement, the trading of shares of Aarambha Chautari Laghubitta has been suspended in Nepse from Ashwin 11, 2077. The last trading of ACLBSL is Rs. 738 [As of Ashwin 8, 2077]. CYC Nepal Laghubitta and Shaligram Laghubitta have not issued shares to the general public. Hence, they are not listed and traded in Nepal Stock Exchange (NEPSE).

The swap ratio for the merger of Aarambha Chautari, CYC Nepal and Shaligram Laghubitta is 1:1:0.85. This means that each 100 shares of Aarambha Chautari, CYC Nepal and Shaligram Laghubitta will translate into 100, 100 and 85 shares respectively of the new entity after merger. After the merger, the capital will rise to Rs 35.03 crores.

Previously, Aarambha Laghubitta successfully merged with Chautari Laghubitta to form ‘Aarambha Chautari Laghubitta’. Aarambha Chautari Laghubitta started joint transaction after merger from Ashad 22, 2077.

Merger/Acquisition Of Microfinance Companies In Nepal

About Aarambha Chautari Laghubitta Bittiya Sanstha Limited

Aarambha Chautari Laghubitta Bittiya Sanstha is the national level ‘D’ class micro finance of Nepal licensed by Nepal Rastra Bank. It currently operates in 31 districts.

Chautari Laghubitta established on 23rd of March, 2015 and Aarambha Laghubitta established on 19th of April, 2014 succesfully merged with one another and formed ‘Aarambha Chautari Laghubitta’.

Until the Ashad end 2077, Aarambha Chautari Laghubitta has a paid-up capital of Rs 26.34 crores. Likewise, it has floated total loans and advances of Rs. 2.52 Arba. In the fiscal year 2076/77, the microfinance earned a net profit of Rs 3.23 crores. [Based on the provisional fourth quarterly report, FY 2076/77]*

About CYC Nepal Laghubitta Bittiya Sanstha Limited

CYC Nepal Laghubitta Bittiya Sanstha Limited registered on 11 February 2019 as a ‘D’ class micro financial institution licensed by Nepal Rastra Bank. It started formal microfinance operation from 15 March, 2019. The head office is located at Baglung Municipality-3 Baglung. It currently operated 21 branch offices which are located in Baglung, Gulmi, Arghakhachi, Tanahun, Palpa, Lamjung, Myagdi, and Parbat.

Until the end of Ashad 2077, CYC Nepal Laghubitta has a paid-up capital of Rs. 7 crores. Similarly, it has floated Rs. 1.11 Arba as loans and advances. In the fiscal year 2076/77, CYC Nepal Laghubitta has earned a net profit of Rs 3.41 crores. [Based on the provisional fourth quarterly report, FY 2076/77]*

About Shaligram Laghubitta Bittiya Sanstha Limited

Shaligram Laghubitta Bittiya Sanstha Limited is a ‘D’ class microfinance institution licensed by Nepal Rastra bank. It started its microfinance operation from August 20, 2019. The head office of the microfinance is located at Beni, Myagdi. It provides microfinance service in Gandaki State.

Shaligram Laghubitta has a current paid-up capital of Rs 1.68 crores.

Suggested Reading:

Top 5 Microfinance Companies In Nepal

List Of “D” Class Microfinance Companies In Nepal

*After the audit, the numbers may vary. Similarly, after merger, the capital as well as other financial indicators will change accordingly.