Mega Bank signs MOU with Tourism Development Bank for merger; paid up to reach Rs 9.48 arba
Fri, Jan 20, 2017 1:34 PM on Latest, Featured, Stock Market,
Mega Bank Nepal Limited (MEGA) has signed an agreement with Tourism Development Bank Limited (TDBL) for merger. The MOU was signed yesterday (Magh 6, 2073) and the swap ratio has been fixed at 100:95. Following the merger process, trading of both banks is going to be suspended in NEPSE.
Tourism Development Bank had also recently started joint transaction after acquiring Matribhumi Bikas Bank and Kalinchowk Development Bank. After acquiring Kalinchowk and Matribhumi in the ratio 100:77:92, its paid up capital has reached Rs 91.97 crore. TDBL has proposed 19.80% bonus share for the FY 2072/73. According to close sources, the merger will take place after TDBL floats its 100% right share endorsed by its SGM on August 31, 2016. After the adjustment of both right and proposed bonus share, the final paid up capital of TDBL will reach Rs 2.02 arba.
Likewise, Mega Bank has a paid up capital of Rs 4.05 arba. It had proposed a bonus share of 13.25% and a further right of 65% for the FY 2072/73. After the issuance of the above bonus and right, the paid up capital would have reached Rs 7.56 arba. However, the issuance of 65% right is likely to be void as it is now merging with TDBL. After the issuance of bonus, the paid up capital of MEGA will reach Rs. 4.58 arba.
The paid up capital of the merged entity (in the swap ratio of 100:95 for MEGA and TDBL) will reach Rs 6.50 arba. It will be short by just 23% to meet the NRB’s requirement of hiking its paid up capital to Rs 8 arba.
Update (January 22, 2017): Mega Bank Nepal Limited has made it clear that its proposed 65% right share has not been cancelled. Due to this, the paid up capital of the merged entity will reach Rs 9.48 arba.
According to the sources concerned with Mega Bank, MEGA and TDBL have signed an agreement out of the blue. Shareholders of MEGA have complained that this merger is against their interest, and a public director of MEGA has requested NRB to further inspect on the matter.
Likewise, Mega Bank has a paid up capital of Rs 4.05 arba. It had proposed a bonus share of 13.25% and a further right of 65% for the FY 2072/73. After the issuance of the above bonus and right, the paid up capital would have reached Rs 7.56 arba. However, the issuance of 65% right is likely to be void as it is now merging with TDBL. After the issuance of bonus, the paid up capital of MEGA will reach Rs. 4.58 arba.
The paid up capital of the merged entity (in the swap ratio of 100:95 for MEGA and TDBL) will reach Rs 6.50 arba. It will be short by just 23% to meet the NRB’s requirement of hiking its paid up capital to Rs 8 arba.
Update (January 22, 2017): Mega Bank Nepal Limited has made it clear that its proposed 65% right share has not been cancelled. Due to this, the paid up capital of the merged entity will reach Rs 9.48 arba.
According to the sources concerned with Mega Bank, MEGA and TDBL have signed an agreement out of the blue. Shareholders of MEGA have complained that this merger is against their interest, and a public director of MEGA has requested NRB to further inspect on the matter.
