The banks are signing a memorandum of understanding (MoU) regarding the acquisition on May 16 at Hotel Annapurna.
The banks have agreed to conclude the acquisition process and start joint transaction within three months. As per a source, swap ratio for the acquisition has not been finalized. An initial agreement of 100:80 swaps has been made; however, the ratio could be altered by 10 points after DDA report of both banks, as per the agreement.
Presently, NMB Bank and Om Development Bank have paid-up capital of Rs 9.61 billion and Rs 2.51 billion respectively. The merged entity will have a paid-up capital of above Rs 11.5 billion.
The merged entity will be headed by Sunil KC, CEO of NMB Bank and Bishwo Mohan Adhikari of Om Development Bank as Deputy CEO.
