September 27, 2019 | Investopaper
Mega Bank (MEGA) has made a statutory agreement to acquire national level Gandaki Bikas Bank (GDBL) on Ashwin 8, 2076. The agreement was made in the presence of the CEO and all the board of directors (BOD) members of both the companies.
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The chairperson of both the banks Mr. Bhoj Bahadur Shah and Sushil Gauchan has decided to go with the mergers and acquisition (M&A) process and signed an agreement in the presence of key persons of the company mentioned above.
After the merger and acquisition process, Mega Bank will establish itself as one of the big ‘A’ class banks of the nation, the chairperson of Mega Bank said. Mega Bank paid-up capital now stands at 10.38 Arab while Gandaki Bikas has a paid-up capital of 2.75 Arab. The swap ratio is expected to be at 1:1 ratio on a paid-up capital of GDBL after adjusting 15 percent dividend.
For the M&A process, the trading of GDBL has been halted in Nepse. Both the banks will jointly request to NRB for the registration of the acquisition process soon.
Mega Bank has announced 11.75 percent dividend to its shareholders from the profit of the fiscal year 2075/76. The bank has shown outstanding progress in the fourth quarter report of 2075/76.
LTP of Mega and Gandaki Bikas stands at Rs. 190 and Rs. 201 respectively.
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