Thursday, June 13, 2013

Manakamana Development Bank, Infrastructure Development Bank, Valley Finance and Yeti Finance finalise share swap ratio

Two development banks and two finance companies have finalized their share swap ratio today for the proposed merger to form a national level development bank.
The Due Diligence Audit of the four financial institutions has suggested 1:1 swap ratio for shares of Manakamana Development Bank, Infrastructure Development Bank and Valley Finance. However, Yeti Finance’s shares have been fixed to be swapped at a rate of 1.1:1, that is, Yeti Finance will get 10 per cent premium on its shares.
They were working on merger formally from February.
The merger is expected to be completed within this fiscal year.
Following the merger, the new entity's paid up capital will stand at Rs 2.18 billion, whereas deposits will cross Rs 8 billion with lending size of above Rs 7 billion. The total number of customers will surpass 100,000.
Similarly, post merger, the number of branches and ATM outlets will be 38 and 20, respectively.
Share trading of the four listed financial institutions has been suspended since February. Manakamana Development Bank has listed 10 million units of shares at the stock exchange that were last traded at Rs 78 per unit when it was suspended. Likewise, Yeti Finance has listed 2.01 million unit shares which were last traded at Rs 141 per unit, Infrastructure Development Bank has listed 7.13 million unit shares that were last traded at Rs 82 per unit and Valley Finance has listed 1.28 million units shares that were last traded at Rs 93 per unit.

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