Century Commercial Bank & Sagarmatha Finance to commence joint transaction from Asadh 31 as Century Commercial Bank

Nepal Rastra Bank has provided final approval for the acquisition of Sagarmatha Finance Limited (SAFL) by Century Commercial Bank Limited (CCBL) on Asadh 26, 2074. The joint transaction of both companies will start from Asadh 31, 2074. The new entity will be named as “Century Commercial Bank Limited” and will start the integrated business as an “A” class commercial bank. After the acquisition, the registered office of the bank will be at Putalisadak, Kathmandu. CCBL has acquired Sagarmatha Finance in a share swap ratio of 100: 95 respectively from its SGM held on Ashad 18, 2074. The transaction of Sagarmatha Finance and Century Commercial Bank will remain closed on Shrawan 1, 2074 for the process of system integration to start joint operation. Century Commercial Bank’s paid up capital currently stands at Rs 4.71 arba and after acquisition of Sagarmatha Finance, Century Commercial Bank will raise around Rs 74 crore in capital. The bank will be issuing 40% (Rs 1.88 arba) right share to the shareholders of CCBL and previous shareholders of Innovative and Araniko Development Bank. However, shareholders of Sagarmatha Finance are not eligible for the right shares. In addition, Century Commercial Bank is in process of final agreement for the acquisition of Alpine Development Bank and Seti Finance. After acquisition, Rs 50 crore more capital will be added from these two BFIs. Century Commercial Bank will easily fulfill the paid up capital up to Rs 8 arba as directed by NRB from the profit it earned in the current fiscal year. The number of branches of the bank will reach 90 after completion of all acquisitions.