LB Finance secures 65.6% support for AMF bid, offer set to convert to mandatory

Dhammika Perera controlled LB Finance PLC (LB) has formalised its move to acquire Associated Motor Finance PLC (AMF), with its offer now set to convert to a Mandatory Offer. 

In an addendum filed with the Colombo Stock Exchange (CSE) on October 24, 2025, LB Finance clarified the nature of its bid, which was initially announced as a Voluntary Offer on October 17, 2025.

The conversion to a mandatory offer is triggered by firm undertakings LB Finance has already secured from two of AMF’s largest shareholders. John Paulu Irugalbandarage Nalatha Dayawansa (holding 39.95 percent) and Imperial Import & Export Company (Pvt) Ltd (holding 25.65 percent) have both agreed to accept the offer in full. This combined stake represents 65.60 percent of AMF’s issued shares. 

LB Finance stated that once it receives these acceptances, the bid will officially trigger the threshold for a Mandatory Offer under the Company Takeovers and Mergers Code, and an immediate market announcement will be made to that effect.

The terms of the offer remain unchanged from the initial announcement. 

LB Finance is offering Rs. 50.00 per share to purchase 100 percent of AMF’s issued ordinary shares, which amounts to 113,327,268 shares. The company confirmed that the offer is unconditional as to acceptance, given the pre-existing agreements with the majority shareholders. Prior to this bid, LB Finance did not hold any shares in AMF.

LB Finance is a Licensed Finance Company listed on the CSE. Its principal activities include savings mobilisation, lending, finance leases, gold loans, and digital financial services. 

A detailed offer document is to be sent to the Board of Directors and all shareholders of AMF within 28 days of the original October 17 announcement, as required by the code. The announcements were approved by the LB Finance Board of Directors, including Managing Director Niroshan Udage and Executive Director B. D. A. Perera.