LB Finance seals Rs.3.7bn deal for controlling stake in AMF

• CBSL requires AMF to be amalgamated with LB Finance by March 31, 2027

LB Finance PLC, for which the majority shareholder is business tycoon Dhammika Perera-controlled Vallibel One, yesterday disclosed it would acquire a 65.6 percent stake in Associated Motor Finance Company PLC (AMF) for Rs.3.72 billion, following the approval from the Central Bank of Sri Lanka (CBSL).

The deal involves the purchase of 74.3 million shares at Rs.50 from AMF Deputy Chairman and Executive Director John Paulu Irugalbandarage Nalatha Dayawansa, who owns 39.95 percent and Imperial Import & Export Co (Pvt.) Ltd, controlled by his family, which holds 25.65 percent.

LB Finance said the acquisition was approved by its board at a special meeting yesterday (September 26), following the CBSL’s clearance under Finance Companies (Structural Changes) Direction No. 1 of 2013. The CBSL has required AMF be amalgamated with LB Finance by March 31, 2027.

In a separate disclosure, AMF confirmed receiving the notice of the regulator’s approval but said it had not yet received direct communication from LB Finance regarding the transaction.

The modality of the acquisition is still under discussion, LB Finance added.