Kathmandu: Himalayan General Insurance Company and Everest Insurance Company will commence the joint service from 1st Shrawan( mid July). These two companies will be renamed Himalayan Everest Insurance Company Limited after their merger.
Both the companies have convened a special general meeting on June 16 to pass the agenda of the merger. If the general assembly approves the merger agreement between the two companies, will pave the way for integrated business. The directors and promoter shareholders of both the companies have reached an agreement on most of the issues.
Himalayan General will fulfill all the liabilities and obligations of Everest Insurance even if it is said to be merged. Even if the name is ‘Himalayan Everest’, the assets and liabilities will remain under Himalayan General Insurance, so it is an achievement.
The term of the board of directors formed after merger will last till the first annual general meeting after the merger. After that, a new board of directors will be elected.
The two companies have agreed to have a swap ratio of 0.85. After the merger, the share capital of Himalayan Insurance shareholders will remain the same while the number of Everest shareholders’ shares will fall by 15 percent. At present, Himalayan has a paid up capital of Rs 1.17 billion while Everest has a paid up capital of Rs 1.25 billion. After the merger, the paid-up capital will reach Rs 2.23 billion.
