Citizens special meet to finalize NHMFL acquisition today, pave way to invest in share, bond

ShareSansar, June 23:

Citizens Bank International Limited, the first commercial bank set to acquire a banking and financial institution — Nepal Housing and Merchant Finance Limited (NHMFL) — after the central bank introduced the acquisition by-laws in April, is holding its special general meeting today to authorize its Board of Directors for the acquisition.

 The special event has also been called since the central bank has asked Citizens to duly endorse the move through its general meeting. The meeting being held at Amrit Bhog in Kalikasthan, Kathmandu will authorize the BoD to appoint consultants to conduct Due Diligence Audit.

It may be noted that NHMFL has, however, already conducted its DDA.

On May 19, Citizens and NHMFL had signed memorandum of understanding (MoU)  for the acquisition.

The special general meeting will mandate the BoD to purse acquisition bids with other BFIs, too.

According to some senior officials of the bank, they have been holding talks with some four BFIs in a bid to acquire them.

The special general meeting will also endorse a proposal to amend the legal documents of the bank so that it can invest in shares and debentures of the listed/ organized institutions, according to the general meeting notice published by Citizens’ today.

It may also be noted that Citizens’ paid-up capital stands at Rs 2.10 arba and that of NHMFL stands at Rs 22 crore.