Big Merger between Global IME and Janata Bank

July 5, 2019 | Investopaper

After the budget speech provided the hint of the possible big merger between commercial banks, it was one of the most talked topics in the Nepalese share market. Similarly, the Governor of NRB also suggested BFIs to start finding partners before the monetary policy as it may be too late for them. As a result, two banks have decided to love each other and become one.

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Two commercial banks Global IME Bank (GBIME)  and Janata Bank (JBNL) have decided to merge with each other at a swap ratio of 1:0.85. This means the shareholders of Janta Bank will get 85 shares of the GBIME for  100 shares of JBNL. However, the swap ratio will be finalized after the Due Diligence Audit (DDA).

Lately, the increased price of Mega Bank and Century Commercial stock show a positive attitude of investors towards big merger. These stocks also made it to the top turnover list. It would be interesting to see how the market reacts to the big merger scenario after two companies have ignited the process.

The company paid up capital will reach a massive 17.11 Arab post-merger, which will be the highest in the industry. LTP of GBIME stands at Rs.295 while LTP of JBNL stands at  Rs. 214 respectively.

Read Related Contents: 

Significance of Big Merger in Context of Nepal

Technical Issues in Bank Merger


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