Share Swap

National Development Bank plans to use a share swap to execute its impending merger with its commercial banking arm NDB Bank.rn

rnIn an announcement to the Colombo Stock Exchange, NDB says shareholders of NDB Bank will be given shares in NDB, in exchange for the transfer of NDB Bank
quote s net assets to NDB.rn

rn”This transfer will be based on valuations of the net assets of NDB Bank and NDB, to be carried out by an internationally reputed firm of chartered accountants, which will thereafter have to be approved by the shareholders of the two companies at an EGM of their respective companies,” the statement said. rn

rnCommenting on the announcement, banking analysts said the share swap through book valuation has a greater benefit to NDB shareholders. However, a market valuation that was earlier being tossed around would have gone in favour of NDB Bank shareholders.rn

rnNDB has presently owns around 23 percent of NDB in line with Central Bank
quote s requirement, this is a ldblquote first step toward t