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Mr. S.K.
Wickremesinghe, Chairman of the NDB Bank, who had given one
year’s notice of his retirement effective from the end of March
2007 has been persuaded by his fellow directors to continue in
office for a further short period.
Wickremesinghe has told shareholders in the
bank’s annual report that he had been prevailed upon to continue
in office a little longer to ensure continuity until completion
of the initial negotiations with the Commercial Bank of Ceylon
on the possible merger of the NDB and the Commercial Bank.
He reported that after preliminary confidential
discussions between the Chairmen and CEOs of the NDB and the
Commercial Bank of Ceylon, the boards of the two banks approved
a proposal to initiate negotiations to see whether a merger
between the two banks would be possible.
This decision was influenced by the fact that
their activities were to some extent generally complementary.
"During the negotiations, the assistance of an
international consultant, who is well versed in the evaluation
of merger proposals, would be sought whenever necessary,"
Wickremesinghe said.
The NDB report said that if the negotiations
were successful and the merger to be achieved is agreed upon,
the merger proposal will be submitted to the Monetary Board of
the Central Bank of Sri Lanka for approval.
"At this stage therefore, the possible merger of
the two banks is dependent upon the success of the negotiations,
and the grant of the necessary approvals by the Monetary Board
and other regulatory bodies as well as by the respective
shareholders of the two banks," the NDB report said.
Neither Wickremesinghe nor the NDB report laid a
timeline for the conclusion of the negotiations. But the bank’s
CEO, Mr. Nihal Welikala said that shareholders would be informed
of merger developments and their approval sought at the
appropriate time. |
