Civil Bank replies to NEPSE: No official decision or notice of acquisition has been unveiled from their side

Mon, Sep 21, 2020 12:23 PM on Stock Market, Corporate, Latest,

Civil Bank Limited has issued its official response to NEPSE about yesterday's issue of the news leak related to its decision on being acquired by Himalayan Bank.

The news that Civil Bank (CBL) has sent an application to Himalayan Bank requesting for acquisition had circulated among the investors and on various social platforms.

As a result, CBL's stock had gained aggressively yesterday. The price had opened at a gap up from last week's close. It was clear that this news affected the stock price. Thus, NEPSE had issued a notice yesterday asking CBL to respond on the matter.

Civil Bank has issued its official response today. According to the written response, the bank has stated that it hasn't made any formal decision about the acquisition. Also, no official notice has been unveiled from the bank's side.

CBL has made it clear that although it has deployed its personnel to research on potential merger/acquisition opportunities, the committee hasn't made any official decision on the matter.

According to the existing rules, any news or activity that affects the stock price of a company has to be reported to NEPSE. Also, in this particular case, the acquisition/merger process should be kept confidential unless NEPSE officially announces on the matter.