Kathmandu: IME General Insurance Limited and Prudential Insurance Company have signed the memorandum of understanding(MoU) for mergers today. Ambika Prasad Paudel, Director of IME General and Amit Agrawal, Director of Prudential Insurance, conferred the MoU in the presence of Surya Prasad Silwal, the Chairman of the Nepal Insurance Authority.
Vishal Group and Triveni Group are the major promoters of Prudential Insurance. The IME Group is the major promoter of IME General Insurance.
According to the MoU, it has been agreed that the name of the company formed after the merger of both companies will be IGI Prudential Insurance Limited. The proposal regarding the merger will be taken up in the next special general meeting of both companies. Based on the MoU between the two companies and the DDA report, it has been agreed that the swap ratio of IME General and Prudential Insurance be 1:1.
Nepal Insurance Authority had been consistently compelling the promoters of insurance companies to opt for the merger in order to meet the deadline for hiked paid-up capital requirement. All the general insurers are obliged to maintain at least Rs. 2.5 billion paid-up capital by the end of Chaitra 2079 without issuing right shares to their public shareholders.