Global IME bank and Janata bank to undergo merger; Preliminary swap ratio stands at 1:0.85

Fri, Jul 5, 2019 5:30 PM on Latest, Stock Market,
Global IME...

After the arduous attempts of Nepal Rastra Bank (NRB) to push the commercial banks into merger and acquisition, two banks have found their partner. Governor Nepal had advised banks to find the partners to fall in love prior to the Monetary Policy announcement as he suggested that there won't be much time afterwards.

In keeping with it, two commercial banks vis-a-vis Global IME Bank (GBIME) and Janata Bank Nepal (JBNL) have decided to merge. According to the preliminary report, the swap ratio has been set at 1:0.85. This means that investors holding 100 unit shares of JBNL will receive 85 units of GBIME post the merger. However, the final swap ratio will be determined after the Due Diligence Audit (DDA).

According to the third quarter report of FY 2075/76, the paid up capital of GBIME and JBNL stands at Rs 10.31 arba and Rs 8 arba respectively. Similarly, the reserves and surplus of GBIME and JBNL stands at Rs 5.12 arba and Rs 1.75 arba respectively. Therefore, post merger the joint entity's paid-up capital will stand at Rs 17.11 arba. Likewise, their net profit stands at Rs 1.87 arba and Rs 1.02 arba respectively.