10.526% Dividend Distribution of NADEP Laghubitta Has Been Canceled

From the 176th meeting of the board of directors of NADEP Laghubitta Bittiya Sanstha Limited (NADEP) held on Magh 10, the company had proposed 10% bonus shares and 0.526% cash dividend (tax purposes) from the distributable profits and accumulated profits of 2078/79.

Previously, the Chitwan-based Deprosc Laghubitta (DDBL) signed an initial agreement to acquire Dhading-based Nadep Laghubitta on Poush 15, 2077. However, the disagreement in share ratio and employee structuring has led the companies to ditch the merger agreement.

As per the regulations governed by Nepal Rastra Bank, any company whose acquisition/merger has been void cannot distribute dividends until the organization signs a deal for merger/acquisition with another organization.  Due to the prohibition of distribution of dividends to the shareholders until the merger is completed or received by Nepal Rastra Bank, the proposed dividend cannot be distributed as per the decision of the 177th meeting of the Board of Directors of NADEP.  Hence, the dividend distribution of NADEP Laghubitta has been canceled for the Fiscal Year 2078/79.