Mercantile Leasing Limited on Friday said its Board had approved a deal to merger with Nations Trust Bank. 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. 2.25 to Rs. 62.25 towards the close of trade. Shares in Nations Trust meanwhile moved up Rs. 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.
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.
Mercantile Leasing also said it would send shareholders a detailed communiqué explaining the benefits of the proposed merger and the share swap.
John Keells Holdings Ltd is the majority shareholder of MLL, holding 75.36% of the is