Kathmandu. Prabhu Insurance Company and Azod Insurance Company have ended the process and signed a preliminary agreement with United Insurance Company. Azad Shrestha, chairman of Azod Insurance, informed EconomicNews.com that after the discussion at the Insurance Authority on Tuesday, Azod Insurance agreed to merge with another company. The agreement to dissolve the merger between the two companies has been approved by the regulatory body authority.
Chairman Shrestha said that a swap ratio of 100:70 was fixed for merging with Prabhu, but after the due diligence audit (DDA) came up with only 63, Ajod Insurance refused to merge. He said, we were forced to find another partner when the swap ratio was different from the agreement. He also said that while looking for another partner, an agreement was reached with United Insurance.
It was agreed to end the merger after the discussion between the two companies on Tuesday morning. The representatives of both the companies reached the Insurance Authority with a letter to terminate the merger process. The insurance authority has issued a formal letter of dissolution of the merger after discussion.