NB Group's exit from Nepal Bangladesh Bank confirmed

Share Sansar, June 19:

NB Group is set to lose its entire stake in Nepal Bangladesh Bank Ltd. Bangladesh-based International Finance Investment and Commerce Bank Limited (IFIC) has decided to buy NB Group’s 27 percent shares in Nepal Bangladesh Bank Ltd.

As per the deal, NB Group’s total share in Nepal Bangladesh Bank is worth Rs 1arba, 42 crore, 80 lakhs. But NB group promoters stand to gain nothing from the sales as the proceeds would be deposited in a special account at Nepal Rastra Bank.

NB Group had pledged the shares of Bangladesh Bank with different banks to take out loans. NB Group’s shares won’t be released unless the loans taken from those banks are cleared. Since the loans taken by NB group exceed the total cost of its shares, NB promoters would not get even a penny from the sale of the shares.

Meanwhile, IFIC Bank will not be able to own the shares immediately even after paying the money for the shares as Nepal Rastra Bank is yet to finalize how it would use the money to pay the lenders of NB Group.

Apart from the 54 lakhs promoter shares owned by the NB Group, IFIC, which is itself a promoter of Nepal Bangladesh Bank, has said that it would also buy promoter shares owned by Bank of Asia of Bangladesh. Currently, IFIC owns 9 percent shares in Nepal Bangladesh Bank and Bank of Asia 14 percent. After buying NB Group and Bank of Asia’s shares, IFIC’s stake in Nepal Bangladesh Bank will increase to 51 percent.

IFIC is buying 38 lakh units shares at Rs 260 per share and 16 lakhs units shares at Rs 275 per share from the NB group, which is said to be higher than the price determined by the due diligence audit and above the market rate for promoters shares that are said to cost less than the general shares. Today, the price of NBB closed at Rs 301 per unit in the NEPSE.

 

Link of the analysis of the NB Bank: http://sharesansar.com/viewmarketsummary.php?id=12289