Citizens Bank And Tinau Mission Development Bank Sign Final Agreement For Acquisition
January 7, 2020 | Investopaper
Citizens Bank International (CZBIL) is going to acquire Tinau Mission Development Bank (TMDBL), a development bank headquartered in Butwal. Both the banks have signed the final agreement for the acquisition on Poush 22, 2077 BS.
For the acquisition, the swap ratio of TMDBL and CZBIL has been fixed at 100:96. This means that each 100 shares of Tinau Mission Bank will convert into 96 shares of Citizens Bank International after the acquisition.
At present, the paid up capital of Citizens is Rs 9.82 billion and that of Tinau Mission Development Bank is Rs 1.81 billion. After the acquisition, the paid up capital of Citizens Bank will reach Rs 11.66 billion
Similarly, after the acquisition, the bank’s deposits will reach Rs 115 billion and loans will reach Rs 98 billion. The total number of branches of the bank will reach 164. At present, Citizens Bank International has 111 branches, 99 ATMs, 104 branchless banking and 650,000 customers across the country.
The trading of shares of Tinau Mission Development Bank (TMDBL) has remained halted in Nepse after the initial acquisition agreement. The last transaction price of TMDBL is Rs 197.
The initial agreement for the acquisition was signed by Prabal Jung Pandey, the coordinator of the merger committee on behalf of the Citizens Bank and Rajendra Prasad Vajha, the coordinator of the merger committee on behalf of Tinau Mission Development Bank.
Previously, Tinau Mission Development Bank Limited (TMDBL) emerged after successful merger of Tinau Development Bank Ltd, Mission Development Bank Ltd and acquisition of Nepal Community Development Bank Ltd in year 2076.
Similarly, Citizens Bank International has already acquired Sahayogi Bikas Bank Limited.
Suggested Readings:
Merger/Acquisition By Commercial Banks In Nepal
Citizen Bank International Performance Report
