Kathmandu: The IME Group is all set to disinvest in the going National Insurance amid regulatory authority’s curb on cross-holding. IME Group has cross-holdings in two general insurance companies, IME General Insurance and Nepal Insurance.
The regulatory authority, Insurance Board, has instructed all the promoters with cross-holding in the same nature of business to withdraw their investment or opt for a merger or acquisition.
Earlier, it was speculated that IME General Insurance Company and Nepal Insurance Company will be merged. With the withdrawal of investment from Nepal Insurance, the story of IME General and National Insurance ends here.
The promoter shares of IME Limited, IME Investment Pvt. and IME Holding Pvt. Ltd. has been put for sale. Following the IME Group’s request to sell its shares, Nepal Insurance Company has issued a 35-day notice to existing shareholders to purchase the shares.
These three promoters companies have 2,157,615 shares at the rate of 719,205 shares each. The minimum selling price of the promoter share is Rs 325 per share. If existing promoter shareholders do not wish to purchase it within 35 days, the company will offer it to other interested investors. The IME group will get Rs 701.2 million by selling the shares even on the basis of the minimum price set.
IME Group seems to merge or acquire IME General Insurance with any another general insurance company by selling shares of Nepal Insurance Company.