Kathmandu: Surya Life Insurance Company and Jyoti Life Insurance Company have received the final approval for merger from their annual general meeting held today.Now, the BODs of both of these company will fix the date for integrated business after receiving final nod from the Nepal Insurance Authority.
The 14th AGM of Surya Life and 5th AGM of Jyoti Life have passed the special agenda for merger with each other and commence the integrated business under the brand name of ‘Suryajyoti Life Insurance Company’.
The swap ratio between Surya Life and Jyoti Life is 1:0.8245 where 1 unit of share of Jyoti Life’s shareholders will be shrunk to 0.8245 after the merger. Based on the swap ratio, the paid-up capital of Suryajyoti Life will be Rs. 4.54 billion. Both companies are in a position to distribute stock dividend to their shareholders. The undistributed profit and reserve fund can be utilized to arrange additional Rs. 46 crore to meet the regulatory paid-up capital requirement.
It has already been agreed that Keshav Prasad Bhattarai will lead the BODs and Jyoti Life’s CEO Prakash Vikram Khatri will take the charge of CEO of the company after merger. CEO of Surya Life will accept the designation of Deputy CEO.
Surya and Jyoti Life Insurance are doing the first successful merger in the history of life insurance companies in Nepal.