Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Pokhara Finance Limited and Samriddhi Finance Limited have agreed to maintain an equal share swap ratio following their proposed merger, ensuring no dilution in shareholding for investors of either institution.
According to a public notice issued by the companies, the joint merger committee, formed earlier to oversee the consolidation process, fixed the share swap ratio at 1:1 based on the valuation report prepared by an independent evaluator. The valuation assessed the assets, liabilities, and overall business performance of both finance companies.
In line with the committee’s recommendation, the board of directors of Pokhara Finance, in its meeting held on Sunday, formally approved the decision to maintain a 1:1 swap ratio. This means that shareholders of either Pokhara Finance or Samriddhi Finance will retain the same number of shares in the merged entity after the completion of the merger.
Company officials stated that the equal swap ratio reflects the comparable financial position and business strength of both institutions and is aimed at ensuring fairness and protecting shareholder interests during the consolidation process.
The merger process is expected to move forward in line with regulatory approvals and standard procedures prescribed by Nepal Rastra Bank and other concerned authorities.
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