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Mercantile Leasing Limited on Friday said its Board had approved a deal to merger with Nations Trust Bank. News of the merger pushed Mercantile Leasing shares up Rs.
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2.25 to Rs. 62.25 towards the close of trade. Shares in Nations Trust meanwhile moved up Rs.
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2.00 to 27.50.
The deal, proposed on Thursday by Nations Trust Bank however still needs shareholder, the Central Bank approval and court sanctions to go ahead with the merger.
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If approved Mercantile Leasing shareholders will trade each of their shares for two in the merged entity that will operate under the Nations Trust Bank banner.
A Mercantile Leasing statement on Friday said the swap ratio is based on an independent valuation of NTB and Mercantile Leasing conducted by the NDB Investment Bank.
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Mercantile Leasing also said it would send shareholders a detailed communiqué explaining the benefits of the proposed merger and the share swap.
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John Keells Holdings Ltd is the majority shareholder of MLL, holding 75.36% of the is