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

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The deal also needs court approval.

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

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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.

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



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25.00.

-LBO Newsdesk: lboemail@vanguardlk.com

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