Siddhartha & Premier Insurance to merge, both companies halted business
A merger agreement has been signed between Siddhartha and Premier on July 11.
KATHMANDU: The trading of Siddhartha Insurance and Premier Insurance shares has been halted. The stock market for these two companies was halted as they both were about to merge.
A merger agreement has been signed between Siddhartha and Premier on July 11. The swap ratio will be determined after both companies’ DDAs are completed, according to the agreement.
Following the Insurance Committee’s directive on March 24, insurance companies are under pressure to find suitable partners and merge.
The Insurance Committee has directed non-life insurance companies to raise their minimum paid-up capital to Rs 2.5 billion within a year, and life insurance companies to raise theirs to Rs 5 billion.
Siddhartha currently has a paid-up capital of Rs 1.28 billion, while Premier Insurance has a paid-up capital of Rs 1.22 billion.
