Prabhu, Kist, Gauri Shankar and Zenith endorse merger, swap ratio

ShareSansar, June 15:

Kist Bank Limited, Prabhu Bikash Bank Limited,  Gauri Shankar Development Bank and Zenith Finance Limited have duly endorsed their merger through their special general meeting held yesterday.

The special general meeting ratified the Due Diligence Audit report and the MoUs signed with Prabhu, , as well as the swap ratio for the merger, according to joint statement issued by these BFIs.

According to them, the merged entity will then be named Prabhu Bank Limited.

There will be seven board members in the merged entity, and Devi Prakash Bhattachan of Prabhu will be retained as the chairperson and Kumar Lamsal, who is the incumbent CEO of Kist, will be retained as the CEO while Ashok Bhattachan of Prabhu will be the deputy CEO.

They have also worked out the swap ratio as per which Kist will get 97.31 percent, Prabhu and Gauri Shankar will get 107.31 percent each, and Zenith will get 92.31 percent of the stake in the merged entity.

Back in April, the crisis-ridden Kist had sealed the merger deals with Prabhu and the rest.

The BFIs had reached an understanding to finalize the merger within this fiscal year.

To take the process ahead, they have already established a merger committee and have filed an application at Nepal Rastra Bank to get the banking sector regulator’s nod to formally initiate the consolidation process.

Their share trading has also been halted at Nepal Stock Exchange Limited (NEPSE) for the merger.

Once the merger takes place, the bank will have more than hundred branches and human resource of more than one thousand.