Arpico Finance Company PLC (AFC) and Associated Motor Finance Company PLC (AMF) announced the merger of two entities subject to the approval of shareholders and the Colombo Stock Exchange (CSE).
” Pursuant to the decision of the Board on 07th December 2020 to recommend to the shareholders of the Company to amalgamate the Company with Associated Motor Finance Company PlC, based on the approval granted in principle by the Monetary Board of the Central Bank of Sri Lanka in 20L4, and subject to the approvals of the Colombo Stock Exchange in terms of Rule 5.11 of the Listing Rules and the shareholders,” AFC announced today.
Following the merger, the amalgamated entity will be named Associated Motor Finance Company PLC.
The two entities have agreed on a conversion ratio of AFC: AMF is at 1: O.76 ( excluding the shares held by AMF in AFC)
AFC noted that any fractional shares arising based on the aforesaid proportion will be settled in cash.
Following the merger, the new entity would have a float-adjusted market capitalization of Rs. 352.4 million.
AFC and AMF are the 2nd and 4th oldest registered finance companies in Sri Lanka.