3rd May 2021, Kathmandu
Nabil Bank Limited – Nepal’s leading commercial bank has signed an agreement for the acquisition of United Finance Limited – a C-class financial institution.
“The MoU was signed between Nabil Bank & United Finance Limited on April 30. We will go to Rashtra Bank for approval “Anil Keshari Shah, CEO of Nabil Bank, said. The process of valuing assets and liabilities (DDA) will begin once Rastra Bank gives its approval.
It has been decided that all United Finance company transactions will be conducted in the name of Nabil Bank. And the Bank’s existing board members will continue to serve on the board.
As per the acquisition, Nabil Bank will acquire United Finance with a swap ratio of 35:100.
When the market closed on Thursday, Nabil Bank’s price was Rs 1,270 per quintal and United Finance was Rs 423 per quintal.
While it was previously reported that Nabil was under pressure to acquire United due to cross-holding. Shah said denies that fact. There was no stress. We saw a good opportunity and decided to acquisition it.