Ajod Insurance Successfully Merges With United Insurance | Joint Operation From Today
May 28, 2023 | Investopaper
Ajod Insurance Limited (AIL) and United Insurance Company (Nepal) Limited (UIC) have successfully undergone merger with each other. The joint operation, after merger, has commenced in the name of ‘Ajod United Insurance Limited’ from Jestha 14, 2080 BS.
The companies have agreed to merge in the ratio of 100:82.50.
Both the companies have already approved the agenda of merger from their respective Special General Meeting (SGM) held on Baisakh 25, 2080 BS.
The final agreement for merger was inked between the two insurance companies on Chaitra 16, 2079 BS.
Nepal Insurance Authority, the regulatory body, had provided the pre-approval for the merger on Poush 29, 2079 BS.
Earlier, both the companies had signed a preliminary agreement (MOU) for merger on Poush 26, 2079 BS. Due to merger agreement, the trading of shares of basic shareholders of AIL & UIC has remained halted in Nepse.
As per the direction of Nepal Insurance Authority, the regulatory body, the non-life insurance companies are required to meet the minimum capital of Rs. 250 crores by the end of Chaitra, 2079 BS. Hence, these two life insurance companies have opted for merger in order to reach the capital requirement.
Previously, Ajod Insurance had inked the preliminary merger agreement with Prabhu Insurance on Ashad 32, 2079 BS. However, due to dispute over share swap ratio and other issues, the merger was called off.
At present, Ajod Insurance has a paid-up capital of Rs. 100 crores while United Insurance has a paid-up capital of Rs. 107.95 crores.
Himalayan General Insurance Company Limited and Everest Insurance Company Limited have already merged and have commenced joint operation from Shrawan 1, 2079 BS. Likewise, Sanima General Insurance and General Insurance, have completed merger and started integrated transaction from Karthik 7, 2079 BS. Likewise, Sagarmatha Insurance and Lumbini General Insurance have also commenced joint operation Falgun 30, 2079 BS.
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