Kabeli Bikas Bank to acquire Mount Makalu; trading of Mount Makalu halted in NEPSE
Mon, May 15, 2017 1:52 PM on Latest, Featured, NEPSE News, Stock Market,
Kabeli Bikas Bank Limited (KEBL) has signed an agreement to acquire Mount Makalu Development Bank Limited (MMDBL). Mr. Gopal Prasad Kafle, chairman of Kabeli Bank and Mr. Hari Krishna Biraula, chairman of Mount Makalu signed the acquisition papers.
Following the acquisition process, trading of Mount Makalu Development Bank has been suspended in NEPSE from today. The trading will only resume after completion and joint operation of both the banks in the name of Kabeli Bikas Bank Limited.
As per the acquisition agreement, the name of the joined entity will remain "Kabeli Bikas Bank Limited" with its head office in Dhankuta. Currently, Kabeli has a paid up capital of Rs 15 crore while Mount Makalu has paid up capital of Rs 11.27 crore. The share swap ratio will be fixed as per a Due Diligence Audit report. As per NRB's directive, they should increase their paid up capital to a minimum of Rs 50 crore by the end of FY 2073/74.
As per the acquisition agreement, the name of the joined entity will remain "Kabeli Bikas Bank Limited" with its head office in Dhankuta. Currently, Kabeli has a paid up capital of Rs 15 crore while Mount Makalu has paid up capital of Rs 11.27 crore. The share swap ratio will be fixed as per a Due Diligence Audit report. As per NRB's directive, they should increase their paid up capital to a minimum of Rs 50 crore by the end of FY 2073/74.
