National Microfinance Successfully Merges With Summit Laghubitta | Joint Operation From Ashad 30
July 12, 2023 | Investopaper
National Microfinance Laghubitta Bittiya Sanstha Limited (NMFBS) has successfully merged with Summit Laghubitta Bittiya Sanstha Limited (SMFDB). After the merger, the joint operation will commence in the name of ‘National Laghubitta Bittiya Sanstha Limited’ from Ashad 30, 2080 BS.
Nepal Rastra Bank had provided the final approval for merger on Ashad 22, 2080 BS.
The final agreement for merger between the two companies was inked on Ashad 6, 2080 BS.
After the Due Diligence Audit (DDA) report, both the companies have agreed to merge in the share swap ratio of 100:73. This means that every 100 shares of NMFBS will convert into 100 shares of new company formed after merger. Likewise, every 100 shares of SMFDB will convert into 70 shares of new company
Nepal Rastra Bank has already provided the Letter of Intent (LOI) for the merger on Poush 7, 2079 BS.
Earlier, the two microfinance companies signed a preliminary memorandum of understanding (MOU) for merger on Ashwin 26, 2079 BS.
Trading of shares of principal shareholders of NMFBS and SMFDB has remained suspended in Nepse after the merger agreement.
Previously, National Microfinance successfully acquired Mahila Sahayatra Laghubitta and commenced joint operation from Ashad 30, 2078 BS. Likewise, Summit Laghubitta merged with Sajilo Laghubitta and started joint transaction from Ashwin 6, 2077 BS.
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About National Microfinance Laghubitta Bittiya Sanstha Limited
National Microfinance Laghubitta Bittiya Sanstha Limited (NMFBS) is a national level ‘D’ class microfinance company licensed by Nepal Rastra Bank. It received an operating license from NRB on June 11, 2014. Likewise, NMFBS started the business transaction on July 2, 2014. The head office is located at Nilkantha, Dhading.
As of Ashad’s end 2079 BS (Mid-July, 2022 AD), National Microfinance Laghubitta has a paid-up capital of Rs 58.66 crores. The microfinance has floated Rs 10.72 Arba as total loans and advances. [As per Q4 report, FY 2078/79].
About Summit Laghubitta Bittiya Sanstha Limited
Summit Laghubitta Bittiya Sanstha Limited is a ‘D’ class microfinance company licensed by Nepal Rastra Bank. It started its operation from Jestha 6, 2066 BS. The head office is located at Gorkha.
As of Ashad’s end 2079 BS (Mid-July, 2022 AD), Summit Laghubitta has a paid-up capital of Rs 49.40 crores. The company has disbursed loans of Rs. 5.68 crores [As per Q4 report, FY 2078/79]
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