Global IME Bank To Merge With Bank Of Kathmandu

June 16, 2022 | Investopaper

Global IME Bank Limited (GBIME) and Bank of Kathmandu have decided to undergo merger.

A preliminary memorandum of understanding (MoU) has been signed between the two banks today. The MoU was signed by Chandra Prasad Dhakal, Chairman of Global IME Bank and Prakash Shrestha, Chairman of Bank of Kathmandu Limited.

Both the banks have reached a preliminary agreement to merge in the share swap ratio of 1:1. 

The name of the new bank to be formed after the merger will be ‘Global IME BOK Limited’.

The board of directors will have five members including Chairman Chandra Prasad Dhakal from Global IME Bank and two members from Bank of Kathmandu. Similarly, Ratnaraj Bajracharya will be the chief executive officer of the bank. Earlier, Bajracharya was the Chief Executive Officer of Global IME Bank.

With the signing of the MoU, Global IME BOK Bank will establish itself as the largest bank in the country with a total equity of Rs 52 billion. 

If the merger becomes successful, Global IME BOK Limited will be the bank formed after the merger/acquisitions of 21 banks and financial institutions, including five ‘A’ class commercial banks, 10 development banks and six finance companies.

Share Trading Suspended

Nepal Stock Exchange (NEPSE) has suspended the trading of shares of Global IME Bank (GBIME) and Bank of Kathmandu (BOKL). Nepse has stopped trading in shares after a merger agreement was reached between the two banks on Thursday. The share trading of both the banks will be suspended until the merger process is completed.

GBIME last traded at Rs. 251.40 while the shares of BOKL traded at Rs. 227.10 [As of June 15, 2022].


Recommended:

Merger/Acquisition By Commercial Banks In Nepal

Nepal Investment Bank To Merge With Mega Bank Nepal

Investopaper

Investopaper is a financial website which provides news, articles, data, and reports related to business, finance and economics.

Leave a Reply

Your email address will not be published. Required fields are marked *

error: Content is protected !!