Sri Lankaâ€™s Arpico Finance, Associated Motor Finance to merge by November 2019
ECONOMYNEXT- Sri Lankan finance companies Arpico Finance Company Plc and Associated Motor Finance Co. Plc will complete their planned merger by November 2019, a filing at the Colombo Stock Exchange said.
Valuations of the two companies have not yet been finalised, which has delayed the firm informing the market on the compensation Associated Motor Finance (AMF) shareholders would get in Arpico Finance Company (AFC), which would be the remaining company after the merger.
“Since the valuations of the two companies have not reached a final stage, AMF is not able to inform the shareholders/market as to the consideration that would be offered by AFC to the shareholders of AMF to purchase their shares,” AFC said.
AFC will offer new shares in the company to shareholders of Associated Motor Finance (AMF) through private placements, pending regulatory approvals.
AMF acquired 90 percent of AFC shares through a mandatory offer in 2014 under the Central Bank’s Financial Sector Consolidation Plan of 2014.
The two companies will consolidate their human resources, finances, legal structures, technical processes and business practices over four phases, which began in August 2017. (Colombo/July12/2018)