Merger and some speculation about EBL

Rajesh Sharma

Merger is a Jarsi milking cow for speculators. Now it is EBL and Kumari, the next could be EBL and Janata, the third could be EBL and Nabil and so many. Many finance companies and development banks will be paired with EBL, Nabil or SCB. Speculation is another form of wild ima

I have also some speculative assessment about EBL. This may be just wishful thinking or may be some salt withinn, I am not sure. In this phase of wild imagination, it is too painful to stay away. Hence, I have put a speculative scenario about EBL.

Why the Great B. K. Shrestha of EBL sold about 10% of his holding in EBL? As some have said he needs money to arrange his daughter's marriage. Strange imagination! B. K. Shrestha needs to sell shares for his daughter's wedding? Was he eating grass till now? Discovery of stupid reason.

It is clear that B. K. Shrestha needs money now. Why? One of the major reasons could be reinvestment. EBL is his milking cow and he needs money to keep his milking cow healthy and better milking. If EBL issues 1:1 rights shares, B. K. Shrestha needs 15 Corer for his 15 Lakh Kitta Shares. Now , he could have much more than 30 Lakh shares with much less than the amount he has. Is it again a stupid reasoning? I am not sure.

Punjab National Bank was interested in increasing its investment in the past. This time it has that opportunity. Why it will not put a small drop of its investment in such a hugely popular and profitable entity? This is just an unanswered question.

Why PNP and B.K Shrestha will share their hard earned brand value, goodwill, image and standing without any solid reason behind?

Hence, I believe, the merger is just the rumor spread with the intention of getting a few more pennies from heaven and they are surprisingly successful too!

Note: The above conclusion is just the outcome of some imaginative assumptions. Friends, you park your money at your own risk.