Janata Bank 6th AGM on Jestha 30; Conversion of Promoter share & issuance of 2:1 Right share major agendas

Janata Bank will be convening its 6^th Annual General Meeting (AGM) on Jestha 30, 2073. The AGM will be held at Hotel Tribhuvan Army Officers Club, Bhadrakali, Kathmandu at 11:00 AM. Main agendas of the AGM are:

• To endorse the agenda to issue 2:1(50%) right share.
• To increase authorized capital up to Rs 10 arba and paid up capital will increase after bonus and right share is issued.
• Authorize BOD to initiate merger and acquisition process by endorsing Due Diligence Audit (DDA) and memorandum of Understanding (MOU).
• Conversion of promoter – public shareholder structure to 51% promoter shares and 49% ordinary shares from existing 70:30. After the conversion, the promoter share to ordinary share ratio of the bank will stand at 51:49 percent.
• To endorse help provided to earthquake victim of Rs 32.13 lakh as a part of Corporate Social Responsibility (CSR).
• To increase meeting allowance of BOD members.
• To amend article of association and memorandum of association as per directed by registrar office or Nepal Rastra Bank.

Other main agendas of the AGM include financial highlights of 2071/72 and appointment of auditor. The register of their shareholders (book close) will remain close from Jestha 7, 2073 till Jestha  30, 2073 for the purpose of its upcoming AGM. Janata Bank has earned net profit of Rs 22.66 crore in the third quarter of the fiscal year 2072/73 as per unaudited report. It’s paid up capital stands at Rs 2.06 arba and with reserve of Rs 52.42 crore. Earlier, Janata Bank Nepal Limited (JNBL) has canceled the ongoing merger process with Machhapuchhre Bank Limited (MBL).  The ban on trading in NEPSE is expected to be lifted very soon. NEPSE had halted both companies trading from September 9, 2015. 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 121:82. The dispute of bonus share issue lead to disagreement in share swap ratio. As per DDA report Machhapuchchhre and Janata Bank share price was fixed at Rs 109 and Rs 82 respectively. The price evaluation of Machhapuchhre was Rs 100 whereas Janata bank price evaluation was Rs 75. Adjusted price Rs 82 after DDA was not approved by Janata Bank. The cancelation notice of merger process of Machhapuchhre and Janata Bank has already been sent to Nepal Stock Exchange, Sebon and concerned authorities.