KATHMANDU : The Special Annual General Meeting (AGM) of Prabhu Bank Ltd has endorsed the Memorandum of Understanding to acquire Grand Bank Nepal Ltd.
The Special AGM held on Saturday also approved swap ratio of Rs 121.45 of Prabhu Bank Ltd and Rs 65.58 of Grand Bank Nepal Ltd as set by the merger committee following the due diligence audit. The AGM has also provided the authority to take forward the acquisition process to the board of directors of the bank.
IDBL's Special AGM approves share swap ratio
Earlier on July 23, the Special AGM of Grand Bank Limited had approved acquisition by Prabhu Bank Limited as well as the swap ratio.
Prabhu Bank Ltd had started the acquisition process in the last week of January. Prabhu Bank, which had started integrated operation from September last year following merger with Kist Bank, Prabhu Bikas Bank, Gauri Shankar Development Bank and Zenith Finance, decided to acquire Grand Bank Ltd which is in bad health due to heavy non-performing loans.
According to a statement issued by Prabhu Bank, ‘Prabhu Bank Ltd’ will be retained as the bank’s name even after acquisition of Grande Bank. Similarly, Prabhu’s board of directors and the incumbent CEO Ashok Sherchan will get continuity.
“Post-acquisition, the bank will have a total of 136 branch offices and counters, 123 ATM outlets and 1,350 staff members, making it the largest private bank of the country in terms of branch network and number of ATMs,” the statement added.
Paid-up capital of the bank will reach Rs 5.88 billion following the acquisition of Grande Bank. It has already started the process to issue 20 percent rights shares to its shareholders. The bank, which pursued merger with troubled Kist Bank, is now on track to improve its balance-sheet.
