The agreement was signed by Manohar Das Mool, Chairman of Lumbini General Insurance and Ram Krishna Manandhar, Chairman of Sagarmatha Insurance.
According to the agreement, the joint entity of the companies will be rebranded as Sagarmatha Lumbini Insurance Company Ltd. A special agenda regarding the merger will be forwarded in the upcoming AGM.
Similarly, the companies have agreed on swap ratio of 100:80 of Sagarmatha Insurance and Lumbini General Insurance.
After the merger, the joint entity will have a paid-up capital of Rs 2.62 billion.
The joint entity will have 3 directors each from both companies and a independent directors. The joint entity will be chaired by the Chairman of Lumbini General Insurance and have Chunkey Chettri current CEO of Sagarmatha Insurance as CEO.
