Shine Resunga & Gaumukhee enters into a merger process; tentative swap ratio at 1:0.9; Trading Halted

Rupandehi based Shine Resunga Development Bank Limited and Pyuthan based Gaumukhee Bikas Bank Limited has entered into a merger process. The NEPSE has halted the trading of both securities. Chairman of Shine Resunga Development Bank, Mr. Sthaneshwor Poudel and Chairman of Gaumukhee Bikas Bank, Mr. Narayan Baidya of   have signed a Memorandum of Understanding (MoU) on Saturday to enter into a merger process. The paid up capital of Shine Resunga stands at Rs 63.33 crore. From the net profit of the fiscal year 2071/72, the development bank has announced 27% bonus share and 1.42% cash dividend for the tax purpose. After the issuance of bonus share, its paid up capital will reach to Rs 80.43 crore. The paid up capital of Gaumukhee Development Bank stands at Rs 4.68 crore. The bank is in the process to issue right shares worth Rs 1. 68 crore. At the time of merger, its paid up capital will stand at Rs 6.17 crore. The Share swap ratio will be fixed after DDA also being based on net worth. If there is less than 15% difference in net worth than the share swap ratio Shine Resunga: Gaumukee will be at 1:0.9. The name of merged entity will be Shine Resunga Development Bank. The bank will have 21 branch offices and 2 extension counters, after the merger.