Central Bank of Sri Lanka (CBSL) approves merger of two finance companies.
The merger proposal of Arpico Finance Company PLC (AFC) with Associated Motor Finance Company PLC (AMF) has been approved by the Central Bank of Sri Lanka (CBSL) on 22 December 2020, the two companies said in separate stock exchange filings.
The surviving company would be AMF and in terms of the said approval, AMF is required to complete the merger by 31 March 2021.
The merger of aforesaid, will commence, subject to the in principle approval being given by the Colombo Stock Exchange (CSE) to AMF, for the listing of shares of AMF arising from the amalgamation of AFC with AMF in terms of the Listing Rules and the approval of the shareholders of both AMF and AFC, by way of Special Resolutions (post receiving the CSE approval), and the concurrence of the secured lenders to AFC being received by AFC.
The holders of 444,890 shares of AFC constituting 5.98% of the issued shares of AFC other than the 6,992,610 shares held by AMF constituting 94.02%, shall receive 76 ordinary shares of AMF for every one hundred shares of AFC.
In terms of Section 241 (3) (a) of the Companies Act No. 07 of 2007, shares held by AMF in AFC will be cancelled without payment of any consideration, when the amalgamation becomes effective.
Accordingly, a shareholder holding one hundred ordinary shares of AFC will be issued 76 ordinary shares of AMF as consideration for the amalgamation.
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