Kathmandu: United Insurance Company and Ajod Insurance Company signed the final agreement for the merger. The chairman of the Board of Directors (BODs) of the two companies exchanged the final MoU on Thursday following the preliminary memorandum of understanding for the merger signed on Paush 26, 2079.
According to the due diligence audit( DDA ) evaluation report conducted after the initial approval of the merger, the swap ratio between United Insurance and Ajod Insurance decided to be 82.50 equal to 100 i.e. 100 units of United Insurance’s share will be converted into 82.5 shares of Ajod Insurance.
After the merger, the name of the company will be United Ajod Insurance Company. It has been decided that Ajad Shrestha, the chairman of Ajod Insurance will be the chairman of the BODs after the merger. The name of the chief executive officer post-merger has not been decided yet.
Now both companies will call a special general meeting(SGM) and further proceedings will be taken once the house approves the agenda for the final merger with the agreed swap ratio.
Bhatbhateni Supermarket Group is the major promoter of Ajod Insurance while Chaudhary Group and NE Group are the major promoters of United Insurance. Ravi Bhakta Shrestha, the chairman of NE Group is the chairman of BODs of United Insurance. Despite being backed by one multinational company and another prominent business house, United Insurance has not been able to perform well as expected. Ajod Insurance has proved itself a growing company with increasing market share within a short period.