July 9, 2023 | Investopaper
Sana Kisan Bikas Laghubitta Bittiya Sanstha Limited (SKBBL) has successfully merged with RMDC Laghubitta Bittiya Sanstha Limited (RMDC). The two companies will commence joint transaction in the name of ‘Sana Kisan Bikas Laghubitta Bittiya Sanstha Limited’ from Ashad 24, 2080 BS.
Nepal Rastra Bank (NRB) has already granted the final approval for merger on Jestha 24, 2080 BS.
The two wholesale microfinance companies have signed the final agreement for merger on Falgun 18, 2079 BS.
The companies have already approved the agenda for merger from their respective Annual General Meeting held on Chaitra 10, 2079 BS.
Earlier, these two companies had inked the merger agreement on Bhadra 31, 2079 BS [September 16, 2022]. Umesh Lamshal, on behalf of Sana Kisan Bikas Laghubitta and Bhupesh Chutkali, on behalf of RMDC Laghubitta signed the agreement for merger.
The share swap ratio for the merger has been agreed at 100:87. This means that every 100 shares of SKBBL and RMDC Laghubitta will convert into 100 shares and 87 shares of the entity formed after merger respectively.
The name of the company formed after the merger will be ‘Sana Kisan Laghubitta Bittiya Sanstha Limited’. Khem Bahadur Pathak will remain as the chairman and Dr. Shivaram Prasad Koirala will lead as the Chief Executive Officer (CEO).
As of Chaitra’s end 2079 BS, SKBBL has a paid-up capital of Rs. 197.11 crores while RMDC Laghubitta has a paid-up capital of Rs. 156.37 crores.