October 18, 2022 | Investopaper
Sanima General Insurance Company Limited (SGI) and General Insurance Company Limited (GIC) have successfully completed merger. After the merger, the joint transaction will commence from Karthik 7, 2079 BS.
The new company will operate in the name of ‘Sanima GIC Insurance Limited’
Both the companies have already endorsed the merger from their respective Special General Meeting (SGM) held on Ashwin 11, 2079 BS [September 27, 2022].
Likewise, Beema Samiti and the Office of Company Registrar have provided their approval for merger on Ashwin 14, 2079 BS and Ashwin 27, 2079 BS.
The companies have merged in the share swap ratio of 1:1. This means that shareholders with 100 shares in either of the company will receive 100 shares in the company after the merger.
Earlier, the companies had signed a preliminary agreement (MOU) for merger on Ashad 29, 2079 BS.
Due to merger agreement, the trading of shares of these two companies has remained halted in Nepse. The last trading price (LTP) of SGI and GIC stood at Rs. 365, and Rs. 370 respectively.
At present (before the merger), Sanima General Insurance has a paid-up capital of Rs. 100 crores while General Insurance also has a paid-up capital of Rs. 100 crores.
As per the direction of Beema Samiti, the regulatory body, the non-life insurance companies are required to meet the minimum capital of Rs. 250 crores by the end of Chaitra, 2079 BS. Hence, these two life insurance companies have opted for merger in order to reach the capital requirement.
Previously, Himalayan General Insurance Company Limited (HGI) and Everest Insurance Company Limited (EIC) have signed a MOU for merger and have commenced joint operation from Shrawan 1, 2079 BS.
Likewise, Siddhartha Insurance (SIL) and Premier Insurance (PIC) have also inked the merger agreement. Also, Sagarmatha Insurance (SIC) and Lumbini General Insurance (LGIL), Prabhu Insurance (PRIN) and Ajod Insurance (AIL) are also in the merger process.