Prabhu, Grand complete DDA; swap deal values Prabhu’s at Rs 114, Grand’s at Rs 72

ShareSansar, April 1:

The due diligence audit (DDA) in the acquisition deal between Prabhu Bank and Grand Bank is in the final phase of completion.

The joint merger committee of Prabhu and Grand has filed an application at the Nepal Rastra Bank on Tuesday demanding certain facilities. Among other facilities, both the banks have sought one year’s time for deposit renewal.

According to an official with Prabhu Bank, an informal agreement reached after the DDA has valued Rs 100 worth of Prabhu Bank’s shares at Rs 114 and that of Grand Bank at Rs 72. The share swap ratio will be considered final only after the NRB gives its approval to the application filed by the joint merger committee.  

As Prabhu has already signed a formal agreement to acquire Grand Bank, trading in the shares of Grand Bank has been halted.

Meanwhile, Prabhu is also in the process to acquire Vibor Capital. “We are in the process of sending the documents related to the acquisition to the NRB for approval,” said Prabhu Bank CEO Ashok Serchan, adding, “Prabhu will have 51% stake in Vibor Capital.”