June 8, 2020 | Investopaper
The government is going to bring the provision of merging the management of the hydropower project with each other. The Electricity Regulatory Commission is about to bring a policy of merger of hydropower projects like banks and financial institutions.
The 55th meeting of the Commission has issued a draft of ‘Directive on Merger, Acquisition, Purchase, Acquisition or Transfer of Permitted Persons or Projects, 2077 BS’ and requested the concerned bodies to submit suggestions within 15 days.
You May Also Like: Merger/Acquisition By Commercial Banks In Nepal
In the proposed draft of the directive, the public limited company wishing to merge will have to pass a special resolution from its general meeting and submit the required documents. Similarly, the provision has been mentioned that the private limited company has to submit the documents specified in the schedule by making a decision from the board of directors.
In the preamble of the directive, it has been mentioned that in case the permitted persons have been ordered to merge with each other, the permitted persons should submit an application to the open commission within 90 days as there is no need to merge.
There is a provision that the person or company wishing to merge should submit a report to the Commission with the swap ratio and structure of the shares to be maintained after the completion of the work or the basis for the purchase and sale of the Commission.
If the swap ratio and structure submitted by the person or company or the basis and report of the sale of the project are not found to be credible, the Commission may give permission to the person concerned to re-evaluate. The commission said the directive could lead to the merger of more than 50 ailing hydropower projects.
In the draft of the directive, the persons who have obtained permission from the Commission or other bodies for merging, acquiring, buying, selling, receiving or transferring the project should inform within seven days of the completion of the work.
The guideline states that in case of difficulty in fulfilling other directives issued by the commission, facilitation as prescribed by the commission will be provided on the basis of necessity and justification.
Share This Via: