NTB – MLL merger put up for approval

Nations Trust Bank on Thursday said it is pushing a deal to merge with Mercantile Leasing Limited. Nations Trust Bank on Thursday said it is pushing a deal to merge with Mercantile Leasing Limited. The deal will add a leasing business to NTB’s commercial banking portfolio.

The merger however needs MLL board, shareholders and Central Bank approval to go ahead. The deal also needs court approval.

If approved MLL shareholders will trade one of their shares for tow share in NTB.

A statement Thursday said the proposed share swap ratio is based on an independent valuation of NTB and MLL conducted by the NDB Investment Bank.

The John Keells Group holds a 25 percent stake in NTB and a 75.36 percent stake in MLL.

The Board of Directors of NTB believes the merger will create significant value addition to the shareholders of both NTB and MLL.

MLL shares closed at Rs. 60.00 in Thursday trading, while NTB shares edged up 25 cents to close at Rs. 25.00.

-LBO Newsdesk: lboemail@vanguardlk.com