January 9, 2023 | Investopaper
Global IME Bank Limited (GBIME) and Bank of Kathmandu have successfully completed merger. Both the banks will integrate transaction and commence joint operation from Poush 25, 2079 BS. The joint operation will be in the name of ‘Global IME Bank Limited’.
The merger has already received final approval from Nepal Rastra Bank and the respective Annual General Meeting (AGM) of both banks.
The two banks have merged in the share swap ratio of 1:1. This means that every 100 shares of Global IME Bank and Bank of Kathmandu will convert into 100 shares of the bank after the merger.
The swap ratio was determined after the due diligence audit. Both the banks had reached a preliminary agreement to merge in the share swap ratio of 1:1 during the merger agreement.
A preliminary memorandum of understanding (MoU) was signed between the two banks on Ashad 2, 2079 BS [June 16, 2022]. The MoU was signed by Chandra Prasad Dhakal, Chairman of Global IME Bank and Prakash Shrestha, Chairman of Bank of Kathmandu 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.
After the merger, Global IME Bank will establish itself as the largest bank in the country with a total equity of Rs 57 billion.
With the successful merger, 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) had already suspended the trading of shares of principal shareholders of Global IME Bank (GBIME) and Bank of Kathmandu (BOKL). Nepse stopped trading in shares after a merger agreement was reached between the two banks.