July 11, 2021 | Investopaper
Nepal Finance Limited (NFS) has successfully acquired Lalitpur Finance Limited. After the acquisition, both the companies will start the joint transactions from Ashad 27, 2078 BS. The new company will operate in the name of ‘Nepal Finance Limited’. The swap ratio for the acquisition is fixed at 1:1. This means that every 100 shares of Lalitpur Finance will convert into 100 shares of Nepal Finance.
Nepal Rastra Bank had provided the final approval for the acquisition on Ashad 15, 2078 BS. Similarly, the acquisition received approval from the office of the company registrar on Ashad 18, 2078 BS.
The initial acquisition agreement was signed between the directors and top management of both companies during a ceremony held on Poush 23, 2077 BS. Chairman Dr. Hitendra Man Pradhan, on behalf of Nepal Finance, and Chairman Deepak Maharjan on behalf of Lalitpur Finance inked the agreement.
Nepal Finance was the first finance company to be opened with private sector investment while Lalitpur Finance started operation in 2051 BS.
Nepal Finance has recently sold 125 percent right shares. After the right issue, it has a paid-up capital of Rs 30.56 crores. Likewise, on the other hand, Lalitpur Finance has a paid-up capital of Rs 23.69 crores
Earlier, Prime Commercial Bank was going to acquire Lalitpur Finance. However, the acquisition couldn’t be materialized. After breaking off the agreement with Prime Commercial, Lalitpur Finance went into an acquisition with Nepal Finance.
Recommended: Significance of Big Merger in the Context of Nepal