Om Development Bank Limited cancels the proposed issue of 12.70% bonus shares; dividend to be issued post-merger

Sun, May 26, 2019 2:55 PM on Dividend, Bonus & Rights, Latest, NEPSE News,

Nepal Stock Exchange Limited (NEPSE) has published a notice regarding the cancellation of proposed dividend of Om Development Bank Limited (ODBL).

The 159th BOD meeting of ODBL had proposed to issue 12.70% bonus shares for the shareholders out of the profits of FY 74/75. After that the bank was in talks of merger with Prime Commercial Bank Limited (PCBL) due to which the dividend decision was not endorsed.

On 2nd Jestha, 2076, the bank signed MoU for merger with NMB Bank Limited. As per the clause of the agreement, post-merger the bank will conduct joint AGM and distribute dividends to shareholders of both the banks out of the profits of FY 75/76. Since the distribution of 12.70% bonus shares would affect the determined swap ratio, the 165th BOD meeting of ODBL, held on 10th Jestha, 2076, has decided to cancel the issue of proposed bonus shares. Along with this, the bank has asked for approval from NRB for the purpose of conducting AGM.