Nabil Bank Acquires United Finance | Joint Operation From Ashad 27
July 11, 2021 | Investopaper
Nabil Bank Limited (NABIL) has successfully completed the acquisition of United Finance Limited (UFL). Both the companies will start the joint operation after the acquisition from Ashad 27, 2078 BS [July 11, 2021].
Nepal Rastra Bank provided the final approval for the acquisition on Ashad 15, 2078 BS. The acquisition has already received approval from the respective SGM of both companies held on Ashad 5, 2078 BS.
The swap ratio has been fixed at 1:0.35. This means that, after the acquisition, every 100 shares of United finance will translate into 35 shares of Nabil Bank. This is the first merger/acquisition by Nabil Bank.
Nabil bank had signed an MoU with United Finance for the acquisition on Baisakh 17, 2078 BS. Mr. Uday Krishna Upadhyay, the merger coordinator for Nabil Bank, and Mr. Manish Kumar Khemak, the merger coordinator for United Finance inked the agreement for the acquisition.
Chaudhary Group has an investment in both Nabil Bank and United Finance.
Following the acquisition, it has been agreed that all of United Finance’s business transactions will be in the name of Nabil Bank and the Bank’s current board members will remain as the board of directors.
After the acquisition, the Bank’s paid up capital and total capital will increase to NRs. 13.85 billion and NRs. 32.68 billion respectively. Likewise, the Bank’s branch network will increase to 135 with 36 branches located within Kathmandu valley and the total number of ATMs will be 183. As a result of the acquisition, Nabil Bank’s deposit portfolio will increase to NRs. 216 billion and loan portfolio will increase to NRs. 201 billion (as per 3rd quarter’s financial result).
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