Janata Bank and Siddhartha Dev Bank call for SGM to endorse acquisition of Siddhartha; Janata to cancel 60% right share

Janata Bank Nepal Limited (JBNL) and Siddhartha Development Bank Limited (SDBL) have called for their separate SGMs (Special General Meeting) to endorse final approval for the acquisition of SDBL by JBNL. JBNL has called for SGM on Jestha 13, 2074 at Amritbhog, Kalikasthan, Kathmandu while SDBL’s SGM will be conducted on Mandala Banquet, Tinkune, Kathmandu on Jestha 12, 2074. Both the SGMs have the following common agedas:

1. To approve the Due Diligence Audit (DDA) report prepared by the joint acquisition committee and approve the share swap ratio of 1:1
2. To fix remuneration for the DDA auditor MGS & Associates, Chartered Accountants, Partner Mr. Mahesh Kumar Guragain, FCA
3. To amend the Article of Association and Memorandum of Association as per directed by the regulatory authorities
4. To provide authority to the BOD to finalize the acquisition process as per instructions received from regulatory authorities

In addition, JBNL’s SGM will also be cancelling the agenda to issue further 60% right shares that was endorsed by the bank’s 7^th AGM. Janata Bank and Siddhartha Development Bank’s trading has been halt in NEPSE following their respective mergers and acquisition processes. Only those shares that have been traded before those days and registered till 7 business days after Baisakh 29, 2074 are eligible for participation in the SGM. Janata Bank has earned net profit of Rs 16.13 crore in the second quarter of the fiscal year 2073/74 as per unaudited report. It has started joint transaction after merger with Triveni Bikas Bank. After the merger, the capital of the merged entity has reached Rs 4.72 arba. Likewise, SDBL’s paid up capital after its ongoing 50% right share will reach Rs 2.27 arba. After the acquisition, the paid up capital of JBNL will reach around Rs 7 arba. As per NRB’s directive for all commercial banks to increase their paid up capital to a minimum of Rs 8 arba by the end of FY 2073/74, JBNL will need to issue a further capital hike of around Rs 1 arba (around 14.50%).