Merger agreement between Prabhu and Mahalaxmi Life Insurance, Swap ratio 1:1

Jul Fri 2022 02:07:53

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Merger agreement between Prabhu and Mahalaxmi Life Insurance, Swap ratio 1:1

Kathmandu. Prabhu Life and Mahalakshmi Life Insurance are also going to merge. In this regard, both companies have signed an initial memorandum of understanding during an event at Hotel Loft on June 30. According to the agreement, the name of the company formed after the merger will be Prabhu Mahalakshmi Life Insurance. In the company formed after the merger, Prabhu Life's chairman Subhav Amatya will remain, while Mahalakshmi Life's CEO Ramesh Kumar Bhattarai will continue as CEO.

During the merger, the swap ratio will be 1:1. CEO Ramesh Bhattarai informed that they are going to merge in terms of swap ratio, company name, board of directors, management and employees as equals.

At present, the paid-up capital of Prabhu Life is 2 billion rupees, while the capital of Mahalakshmi Life Insurance is 2.1 billion rupees (including the amount raised from institutional investors and the auction process). The paid-up capital of the new company formed after the merger will reach 4.1 billion rupees.