After 6 months hiatus Mega Bank cancels its merger with Paschimanchal Bikas Bank; trading to resume soon in NEPSE

ShareSansar, August 4:

The meeting of joint merger committee held yesterday, consisting of BoD of Mega Bank Limited and Mr. Durga Prasad Pandey, Chairman of Rupendehibased Paschimanchal Bikas Bank, has called off their merger process.

Mega Bank Limited will now be filing a formal request at the Nepal Rastra Bank for the cancellation of the merger process; the ban on trading in NEPSE is expected to be lifted very soon.

NEPSE had halted both companies trading from January 29, 2015.

Mega Bank last traded price stood Rs 395 and Pachimanchal Bikas Bank last traded price was Rs 283 as on 28th January, 2015 in NEPSE.

According to an official source, “the reason behind the cancellation of the merger was due to the disagreement of swap ratio.”

Earlier, the swap ratio for the merger was finalized at 104.25:67 which meant mega bank shareholders were to get extra 4.25 percent shares in premium.

Mega Bank paid up capital stands at Rs. 2.60 arba as of Asad end of last FY 2071/72. The company has accumulated Rs. 21.13 arba in deposit and extended Rs 17.99 arba in loan during the same period. With customer base of 1 lakh 43 thousand, the Bank’s average loan is 2.051 crore and average deposit is 1 lakh 47 thousand. The Bank has 28 branches, 31 ATMs, 47 Branchless Banking Centers and 1200 Mega Remit agents.

Whereas, Pachimanchal Bikas Bank paid up capital stand at Rs 33.65 crore. The company reserve and surplus figure is above Rs 20 crores. It has not distributed any dividend to its shareholders in last three fiscal years.