KATHMANDU, May 21: Nabil Bank has received approval from its shareholders for acquisition of Nepal Bangladesh Bank (NBB) after the special annual general meeting held on Saturday endorsed the proposal.
Following the acquisition, it has been agreed that all of NBB’s business transactions will be in the name of Nabil Bank and the Bank’s current board members will remain as the board of directors. The swap ratio has been agreed to be fixed at 100 units shares of NBB equivalent to 43 units shares of Nabil Bank.
Currently, Nabil Bank has paid up capital of Rs 18.50 billion while that of the NBB is Rs 10.09 billion. After the completion of the acquisition, the unified entity will have a combined capital base of Rs 23 billion as per the swap ratio.
NBB was established in 1994 as a joint venture between Nepali NB Group and Bangladeshi IFIC Bank. In July 2021, NBB announced the exit of IFIC Bank that owned 40.09 percent shares of the bank from the joint-venture bank in order to join hands with Nabil Bank. The Binod Chaudhary-led Chaudhary Group then made its way to purchase 36,827,426 unit shares of the foreign partner of the NBB in February 2022.
Two months ago, Nepal Rastra Bank provided a letter of intent to Nabil Bank for the acquisition of the NBB.