Industry giant Nabil Bank has signed an acquisition agreement with United Finance Limited.
The companies have signed the acquisition agreement today, i.e. Friday, Baisakh 17, in a program held in the commercial bank's office.
The agreement has been signed by Uday Krishna Upadhyaya, coordinator of the merger committee on behalf of Nabil Bank, and Manish Khemka, member of the merger committee on behalf of United Finance.
As per the agreement, a merger and acquisition agreement has been signed to maintain the share swap ratio of 35 shares of Nabil Bank equating to 100 shares of United Finance. NABIL has an LTP of Rs. 1,270 while UFL has an LTP of Rs. 423.
Following the acquisition, it has been agreed that all of United Finance’s business transactions will be in the name of Nabil Bank and the Bank’s current board members will remain as the board of directors.
After the acquisition, the Bank’s paid-up capital will increase to NRs. 13.85 billion. Likewise, the Bank’s branch network will increase to 147 with 37 branches located within Kathmandu valley and the total number of ATMs will be 190. As a result of the acquisition, Nabil Bank’s deposit portfolio will increase to NRs. 216 billion and loan portfolio will increase to NRs. 201 billion (as per 3rd quarter’s financial result). With this acquisition, Nabil Bank will enter the market with a new strategy through its innovative services and additional branch network.