Unnati Microfinance and Sahakarya Laghubitta sign initial agreement for merger; merged entity to be called Unnati Sahakarya Laghubitta

Unnati Microfinance Bittiya Sanstha (UMB) and Sahakarya Laghubitta Bittiya Sanstha have decided to merge the institutions. The two companies signed the initial agreement to merge yesterday.

The chairman of Unnati Microfinance, Mrs. Anita Dhungana Shah and chairman of Sahakarya Laghubitta Mr. Khilaraj Mainali had signed the agreement.

Unnati Microfinance currently has branches in 15 districts while Sahakarya Laghubitta has established branches in 10 districts. The paid up capital of UMB stands at Rs.8.82 Crore and that of Sahakarya Laghubitta stands at Rs.1.40 Crore. The merged entity will be called Unnati Sahakarya Laghubitta.

Both companies had decided to issue right shares before the agreement. UMB will be issuing 100% right shares whereas Sahakarya Laghubitta will be issuing 300% right shares.

The merged entity will be established as a national level microfinance company.