Machhapuchchhre & Janata Bank: Merger process going on as scheduled

Machhapuchchhre Bank Limited (MBL) and Janata Bank Limited (JBNL) have entered into a merger process on September 29, 2015.

The tentative share swap ratio between the banks has been fixed. The share swap ratio of MBL: JBNL stands at 121:85 respectively.

Recently MBL has announced a stock dividend of 16% to its shareholder. Rumors have been circulating that the officials from JBNL have objected the stock dividend to MBL shareholders. The shareholders of MBL would get 16% bonus as well as the 21% premium on swap ratio. Allegations were made that the JNBL would call off the merger due to unfair advantageous position that MBL shareholders would get due to 16% bonus share.

ShareSansar raised these concerns with the company secretary from both the banks.

Mr. Tika Bhattarai, Company Secretary of MBL, said, "There is no truth to those rumors. Our merger process is going on as scheduled. Our BoD has proposed 16% stock dividend to shareholders of MBL from the profit of last fiscal year. We have not had any objections on this issue from representative of Janata Bank."

Mr. Bishwa Subedi, Company Secretary of JNBL, said, "There are no issues being raised from our side on the merger process regarding the stock dividend from Machhapuchchhre. The central bank has issued LOI for our merger process. So, joint merger committee is working diligently to merge these banks."

So, it has been clarified that there is no ongoing feud between these banks which might derail the merger process as rumored.

 Machhapuchchhre & Janata Bank officially enters into merger process; joint merger committee formed