Kathmandu: The efforts of the Nepal Insurance Authority to end the cross-holdings of IME group and Vishal Group in two general insurance companies have been futile. The regulatory authority had tried to compel the promoters of IME General Insurance, Nepal Insurance Company, and Prudential Insurance Company to reach sign memorandum of understanding (MoU) for a merger.
IME Group has cross-holding in Nepal Insurance Company and IME General Insurance Company. Vishal Group has cross-holding in Nepal Insurance and Prudential Insurance. These promoters refused to agree on the
The promoters of Nepal Insurance Company denied agreeing on a 1:1 swap ratio with IME General Insurance, and Prudential Insurance Company. As the efforts for merger among these companies went futile, sources inform that Prudential Insurance and IME General Insurance mull signing MoU for the merger. The merger will be signed on equal footing i.e. 1:1 swap ratio.
At present, the paid-up capital of IME General is Rs. 1.8 billion, while that of Prudential Insurance is Rs.1.18 million. After the distribution of the proposed bonus shares, the paid-up capital of Prudential Insurance will reach Rs. 1 billion 250 million. As the merger is taking place on an equal basis, the paid-up capital after the merger will reach 3 billion 50 million.