Manakamana, Infrastructure, Yeti and Valley fix share swap ratio

ShareSansar, June 14:

Manakamana Development Bank, Infrastructure Development Bank, Yeti Finance and Valley Finance have agreed on a share swap ratio, paving the way for their merger process.

Following a due diligence audit, the merger committee decided to fix the share swap ratio for Manakamana, Infrastructure and Valley at 1:1:1, Yeti Finance has been given 10 percent premium.

After the merger, the value of Yeti’s share will rise to Rs 110 from the current Rs 100.

All the four institutions have called their special general meeting for June 27. The main agenda of the meeting would be getting the shareholder’s approval on the share swap ratio.

Immediately after the merger, the companies plan to publish a combined financial statement for the fourth quarter. But before publishing the financial statement, the banks will have to get a go ahead from Nepal Rastra Bank.

The paid up capital of the merged entity is expected to reach 2 arba 20 crore rupees, which makes it eligible to function as a commercial bank.

But a source briefed about the merger said that the new entity would continue as a development bank for now. The new entity would go by the name of Manakamana Development Bank. A new name would be finalized later through the first AGM of the merged entity.