Kathmandu: Himalayan General and Everest Insurance are merging with each other. For this, both the companies have called a special general meeting on June 20. The swap ratio is fixed for merger purposes. In which, the ratio of 85 lots (100: 0.85) shares of Himalayan will be equal to 100 lots shares of Everest.
Trading in shares of Himalayan General Insurance and Everest Insurance has been suspended. After the merger of Himalayan and Everest Insurance, the share trading of both has been stopped. A merger agreement was signed between the two companies on April 6.
Currently, Himalayan General has a paid up capital of Rs 1.17 billion and Everest Insurance has a paid up capital of Rs 1.25 billion. These insurance companies have chosen the path of merger to raise the capital specified by the Insurance Committee.
It is also the first merger agreement between an insurance company. The committee has increased the paid-up capital of non-life insurance companies from Rs 1 billion to Rs 2.5 billion.