KATHMANDU: Global IME Bank Limited has decided to sell its promoter shares in Reliable Nepal Life Insurance after cross-holding in two different life insurance companies.
According to the Insurer’s Corporate Good Governance Directive 2080, the same group or institution cannot own more than 3 percent (basic) shares in more than one insurance company of the same nature. Global IME Bank Limited holds 10 percent promoter shares in Reliable Nepal Life.
For this reason, Global IME Bank Limited has put up 46,77,120 units of promoter shares out of a total of 51,96,800 promoter shares for sale to remove the ‘cross holding’ completely. The minimum sale price per share has been fixed at Rs 250. As per the rules, the bank will retain 1 per cent share ownership as it has not kept all the shares in the queue.
After the completion of the sale of the promoter shares of Reliable Nepal Life, Global IME Bank’s IME Life Insurance will be limited to life insurance. Global IME Bank Limited currently holds 10 percent stake in IME Life Insurance.
Earlier, IME Group had a cross holding in the non-life insurance category. At that time, the group had a share stake in both IGI Insurance and Nepal Insurance in the non-life insurance category.
IME Group had sold its 15% promoter stake in Nepal Insurance Company to Asian Life Insurance.
After the exit of Nepal Insurance Company and the merger between IGI Insurance and Prudential Insurance, IGI Prudential Insurance has limited its investment in non-life insurance.
Vishal Group, Golyan Group and Ramesh Corp Group continue to maintain cross-holdings in insurance companies through family members and their sister institutions.
