Arpico Finance merger with Associated Motor Finance given nod

Associated Motor Finance Company (AMF) PLC and Arpico Finance Company PLC (AFC) have received approval from the Central Bank to merge their operations in line with the government’s financial sector consolidation programme. 

A stock market filing said the merger received green lighted from the Central Bank on December 23. The surviving entity after the merger, which is required to be completed by March 31, 2021, would be AMF. 

 “Accordingly, the merger as aforesaid, will commence immediately, 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 filing said.

The holders of 444,890 shares of AFC constituting 5.98 percent of the issued shares of AFC other than the 6,992,610 shares held by AMF constituting 94.02 percent, shall receive seventy six (76) ordinary shares of AMF for every one hundred (100) 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 (100) ordinary shares of AFC will be issued seventy six (76) ordinary shares of AMF as consideration for the amalgamation.