Mega Bank to endorse 13.25% bonus & 65% right share; 6th AGM today

Mega Bank Nepal Limited (MEGA) is conducting its 6^th Annual General Meeting (AGM) today (Chaitra 3, 2073). The AGM is being held at Army Officers Club, Bhadrakali, Kathmandu at 11:00 AM. The main agendas of the AGM are:

1. To endorse 13.25% bonus shares and 0.70% cash dividend (for tax purpose) to the shareholders from the profits in the FY 2072/73
2. To endorse the issuance of 65% right shares after capitalization of above bonus shares
3. To amend the Article of Association and Memorandum of Association accordingly after the increase in paid-up capital
4. To endorse the addition of following points in the MOU:
   • To invest in an insurance company by establishing its own subsidiary or with partnership with domestic/foreign companies
   • To accept IPO/FPO applications through ASBA process
   • To provide services as a stock broker after the approval of regulatory authorities
   • To provide services as a depository participant (DP) under the regulations of SEBON
   • To establish its own subsidiary merchant banking company or invest in an already established merchant banking company
5. To provide authority to the BOD to perform all necessary actions required for merger or acquisition
6. To provide authority to the BOD to invite foreign strategic partner

Trading of MEGA has been suspended in NEPSE since Magh 9, 2073 after their initial agreement for merger with Tourism Development Bank Limited. Only those shareholders who have bought shares before Magh 6, 2073 and registered until Falgun 17, 2073 are eligible for the above mentioned bonus shares and for the participation in the AGM. MEGA has earned Rs 37.09 crore in the second quarter of the fiscal year 2073/74. It had issued 25% right shares which were not fully subscribed by its shareholders. The unclaimed right shares will be auctioned soon and are not eligible for the bonus shares. MEGA’s paid-up capital after the recently issued 25% right stands at Rs 4.01 arba. Its paid up capital after the issuance of 13.25% bonus and 65% right will reach Rs 7.56 arba. Mega Bank and Tourism Development Bank have signed an MOU on Magh 6, 2073 for merger with swap ratio of 100:95. After the merger, the paid up capital of the merged entity will reach Rs 9.48 arba.