Prabhu Bank Acquires Century Commercial Bank | Joint Operation From Today
January 10, 2023 | Investopaper
Prabhu Bank Limited (PRVU) has successfully acquired Century Commercial Bank Limited (CCBL).
After the acquisition, the joint transaction has commenced in the name of “Prabhu Bank Limited” from Poush 26, 2079 BS. Ashok Sherchan, the CEO of Prabhu Bank, is the chief executive officer (CEO) of the bank.
Nepal Rastra Bank granted the final approval for the acquisition on Poush 19, 2079 BS. Previously, the central bank had issued the Letter Of Intent (LOI) for the acquisition on Bhadra 20, 2079 BS.
Earlier, both the banks had reached a preliminary agreement (MOU) for acquisition on Shrawan 15, 2079 BS.
The board of directors of the bank formed after acquisition will have 4 members from Prabhu Bank and 3 members from Century Commercial Bank.
As of Ashad’s end 2079 BS, Prabhu Bank Limited has the paid up capital of Rs. 12.70 billion while Century Commercial Bank Limited has a paid-up capital of Rs. 9.55 billion.
The swap ratio for the acquisition has been agreed at 1:1. This means that every hundred shares of Prabhu Bank will equal 100 shares of the Century Commercial Bank.
After the acquisition agreement, the trading of shares of basic shareholders of PRVU & CCBL has remained halted in NEPSE (from Shrawan 16, 2079 BS).
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