ILFC, Shree 'to merge' with BoK; swap ratio 50 for ILFC and 90 for Shree

Kathmandu, Jan 24

International Leasing and Finance Company Limited (ILFC) and Shree Investment and Finance Company are all set to merger with Bank of Kathmandu (Bok), according to a media report.

All the three BFIs have decided to formally seek the central bank’s approval for the merger as they have more or less completed all the internal procedures for the merger, according to Naya Patrika daily.

 According to sources, the three BFIs have also agreed on the swap ratio: 50 percent for

ILFC and 90 percent for Shree Investment.

The BFIs are, however, yet to work out the representation of the finance companies on the board and the management of the BoK, sources privy of the development said.

It may be noted here that the price of Shree Investment’s shares were surging dramatically in the share market over the last few days while the price of shares of ILFC has not increased remarkably.

 “We will sign a formal agreement for the merger within the next few days,” a source with ILFC said.

It may also be noted that some of the promoters of the BoK and ILFC are common.

Earlier ILFC was reported to have been working for a merger with Grand Bank.

Sources further informed that the BoK is seeking merger with more BFIs once this merger with ILFC and Shree Investment is settled soon.