What’s the latest on merger among banking and financial institutions?
ShareSansar, May 30:
As directed by the central bank, many banking and financial institutions (BFIs) have merged and many are seeking merger and acquisition. Such merger and acquisition have immense bearing on the shareholders of the BFIs concerned, though it also has some impact on the stock market itself.
Hence it is crucial to keep a close tab on the status of merger among the BFIs. ShareSansar brings updated status of the BFIs have been merged of late as well as those well into the merger process and the mergers in the offing.
We have also compiled other relevant information regarding the merger such as the name of the merged entities as well as real or tentative dates of merger and the swap ratio.
We hope it will be beneficial for the bankers and other stakeholders, too.
Table 1: BFIs which have already completed the merger process
|
S.No. |
Transaction Name after Merger |
Former Company Name |
Merger Date/Endorsed Date |
Swap Ratio |
||
|
1 |
Apex Development Bank Limited |
Royal Merchant Banking and Finance, Rara Development Bank and Api Finance Ltd |
15/07/2013 |
1 |
1 |
1 |
|
2 |
Araniko Development Bank Limited |
Araniko Development Bank Limited and Soorya Development Bank Limited |
14/07/2013 |
1 |
0.90 |
|
|
3 |
Axis Development Bank Limited |
Pashupati Development Bank and Udyam Development Bank Limited |
03/03/2014 |
1 |
1 |
|
|
4 |
Biratlaxmi Bikas Bank Ltd |
Biratlaxmi Bikas Bank Ltd and Khandbari Development Bank Ltd |
15/05/2014 |
0.25 |
0.33 |
|
|
5 |
Business Universal Development Bank Limited |
Business Development Bank and Universal Finance Limited |
13/02/2012 |
1 |
1 |
|
|
6 |
Civil Bank Ltd. |
Civil Bank, Civil Merchant Bittiya Sansatha and Axis Development Bank |
03/03/2014 |
1 |
0.79 |
0.79 |
|
7 |
Global IME Bank Limited |
Global Bank, IME Financial Institution and Lord Buddha Finance Limited |
11/05/2012 |
1 |
1.05 |
0.75 |
|
8 |
Global IME Bank Limited |
Global IME Bank, Social Development Bank Limited and Gulmi Bikas Bank Ltd |
08/01/2008 |
1 |
0.40 |
0.50 |
|
9 |
Global IME Bank Limited |
Commerz and Trust Bank Nepal and Global IME Bank Limited |
03/03/2014 |
0.65 |
1 |
|
|
10 |
H & B Development Bank Limited |
Himchuli Dev Bank and Birgunj Finance Limited |
06/04/2011 |
1 |
1 |
|
|
11 |
Infrastructure Development Bank Limited |
Infrastructure Development Bank and Swastik Merchant Finance Limited |
27/08/2011 |
1 |
1 |
|
|
12 |
Kasthamandap Development Bank Limited |
Kasthamandap Dev Bank and Shikhar Finance Limited |
13/04/2012 |
1 |
1 |
|
|
13 |
Laxmi Bank Limited |
Laxmi Bank and Hisef Finance Limited |
16/07/2004 |
1 |
1 |
|
|
14 |
Machhapuchchhre Bank Limited |
Machhapuchchhre Bank and Standard Finance Limited |
30/04/2012 |
1 |
0.85 |
|
|
15 |
Narayani National Finance Limited |
Narayani Finance and National Finance Limited |
01/11/2009 |
1 |
1 |
|
|
16 |
Nepal Bangladesh Bank Limited |
Nepal Bangladesh Bank, NB Finance and Nepal Sri Lanka Merchant Bank Ltd |
n/a |
2 |
1 |
|
|
17 |
NIC Asia Bank Limited |
Nepal Industrial and Commercial Bank and Bank of Asia Nepal Limited |
30/06/2013 |
2 |
1 |
|
|
18 |
Prabhu Bikas Bank Limited |
Prabhu Finance Co Ltd, Baibhav Fin Ltd and Sambridhi Dev Bank Ltd |
28/06/2013 |
1 |
0.57 |
0.75 |
|
19 |
Professional Diyalo Bikas Bank Limited |
Diyalo Bikas Bank Limited and Professional Bikas Bank Limited |
04/05/2013 |
1 |
1 |
|
|
20 |
Prudential Finance Company Limited |
Gorkha Finance Limited and Prudential Finance Limited |
21/03/2013 |
1 |
1 |
|
|
21 |
Reliable Development Bank |
Reliable Finance, Nepal Consumer Development Bank Limited and Subhalaxmi Finance Limited |
16/04/2014 |
1.127 |
0.94 |
0.89 |
|
22 |
Reliance Lotus Finance LTD. |
Reliance Finance and Lotus Finance Limited |
28/04/2014 |
1 |
1 |
|
|
23 |
Shine Resunga Development Bank Limited |
Shine Development Bank and Resunga Development Bank Limited |
17/03/2013 |
1 |
1 |
|
|
24 |
Siddhartha Finance Limited |
Siddhartha Finance Limited and Imperial Finance Limited |
28/04/2014 |
1 |
0.80 |
|
|
25 |
Supreme Development Bank Limited |
Annapurna Development Bank and Suryadarshan Finance Limited |
11/04/2012 |
1 |
1 |
|
|
26 |
Synergy Finance Limited |
Alpic Everest Finance, Butwal Finance and CMB Finance Limited |
06/12/2012 |
1.10 |
1.20 |
0.88 |
|
27 |
Vibor Bikas Bank Limited |
Vibor Bikas Bank and Bhajuratna and Saving Finance Limited |
02/09/2012 |
1 |
1.20 |
|
|
28 |
Yeti Development Bank Limited |
Manakamana Dev. Bank , Yeti Fin Ltd and Valley Finance Ltd |
15/07/2013 |
1 |
1 |
1 |
Table 2: Companies that received Letter of Intent (LOI) for merger:
|
S.No. |
Company Name |
Transaction Name after merger |
Tentative Date |
Remarks |
Tentative Swap Ratio |
|
1 |
Bageshowri Development Bank and Shangrila Development Bank Limited |
Shangrila Development Bank Limited |
Before the end of this fiscal year |
Waiting for final approval |
1:1 |
|
2 |
Gaurishankar Dev. Bank Ltd, Prabhu Bikas Bank Ltd, Zenith Finance Ltd and Kist Bank |
Prabhu Bank Ltd. |
By the end of this fiscal year |
Prabhu Bikas Bank sat for Special meeting. Gaurishankar Dev. Bank will sit for special meeting on 14th June, 2014. |
Not disclosed |
|
3 |
Lumbini Bank Ltd and Navadurga Finance Limited |
Target this Fiscal Year |
Sat for Special General Meeting, Waiting for final Approval |
1:0.8 |
|
|
4 |
Purbanchal, Madhyamanchal, Paschimanchal, Madhyapaschimanchal and Sudur Paschimanchal Gramin Bikas Bank Limited |
Gramin Bikas Bank |
Target this Fiscal Year |
Waiting for final approval |
0.0102:0.0118:2.758:0.7778:0.0102 |
Table 3: Merger in the pipeline:
|
S.NO |
Company Name |
Status |
|
1 |
Lalitpur Finance Limited and Arun Finance Limited |
MOU signed, Waiting for LOI |
|
2 |
NDEP Devt Bank Ltd and Yeti Devt Bank Limited |
MOU signed, NDEP sat for AGM, Yeti Dev. Bank will sit for AGM on 12/06/2014 |
