DLBS and KLBS are set to merge; swap ratio 1:0.75
Dhaulagiri Laghubitta Bittiya Sanstha Limited (DLBS) and Khaptad Laghubitta Bittiya Sanstha Limited (KLBS) are set to merge (swap ratio 1:0.75) and operate as a single entity called ‘Dhaulagiri Laghubitta Bittiya Sanstha Limited’ starting from Ashad 20, 2080 BS. The merger has received final approval from Nepal Rastra Bank.
The swap ratio between DLBS and KLBS has been set at 1:0.75. Interestingly, the current market price of KLBS stands at Rs. 875, whereas DLBS is trading at a lower price of 739.90. This situation presents a trading opportunity where the company with a higher valuation is trading at a comparatively lower price, and vice versa.
Both microfinance companies approved the merger during their respective Annual General Meetings held on Baisakh 16, 2080 BS. The final agreement for the merger was signed on Falgun 17, 2079 BS (March 1, 2023), following a preliminary Memorandum of Understanding (MOU) signed on Mangsir 18, 2079 BS (December 4, 2022).
Dhaulagiri Laghubitta is a national-level microfinance company based in Baglung, while Khaptad Laghubitta operates in the Sudurpaschim Province with its head office in Kailali. As of the end of Ashad 2079 BS, Dhaulagiri Laghubitta had a paid-up capital of Rs. 10.31 crores, whereas Khaptad Laghubitta had a paid-up capital of Rs. 4 crores.