April 30, 2021 | Investopaper
Nabil Bank Limited (NABIL) is going to acquire United Finance Limited (UFL). The bank has signed a MoU with United Finance for the acquisition on Friday. Mr. Uday Krishna Upadhyay, merger coordinator for Nabil Bank and Mr. Manish Kumar Khemak, merger coordinator for United Finance inked the agreement for acquisition.
The swap ratio has been fixed at 1:0.35 . This means that, after the acquisition, each 100 shares of United finance will translate into 35 shares of Nabil Bank. This is the first merger/acquisition by Nabil Bank.
Chaudhary Group has 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 will increase to NRs. 13.85 billion. Likewise, the Bank’s branch network will increase to 147 with 37 branches located within Kathmandu valley and the total number of ATMs will be 190.
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).