Nepal Investment Bank & Ace Development likely to be single entity

There is a merger/acquisition going to take place between Nepal Investment Bank Limited (NIB) and Ace Development Bank Limited (ACEDBL). The price of Ace Development Bnk Limited has been on the rise after the rumor of its merger/ acquisition with the Nepal Investment Bank Limited. However, will it be a merger or acquisition is yet to be finalized. The last trading price of Ace Development Bank is at Rs 350 as on January 25, 2016. The price went up by 9.90% on January 24. On Januray 21, 2016 the closing price of Ace Development Bank stood at Rs 303. On Januray 6, 2016 the closing price of Ace Development Bank was at Rs 290. The merger/acquisition process between these two banks will only take place after Nepal Investment Bank floats its FPO. The FPO of NIB is scheduled to be issued by the first week of Falgun at Rs 601/unit after addition of premimum of Rs 501/ unit. After the FPO, the investment bank’s paid up capital will stand at Rs 7.252 arba. Ace Development Bank has provided 13% bonus shares to the shareholders from the net profit earned in the last fiscal year. After distributing 13 percent bonus share it’s paid up capital will be at Rs.1 arba. After FPO and merger/acquisition the paid up capital of Nepal Investment Bank Limited will reach a paid up capital of Rs 8 arba.