Seeks CB approval for amalgamation with Asian
Ceylinco Finance to be upgraded
Ceylinco Finance PLC will be the largest financial house in the
country with its amalgamation with Asian Finance PLC and is awaiting
Central Bank approval shortly, said Ceylinco Finance PLC Executive
Director Bede Fernando.
“We have made an application to the Central Bank in early 2007 with
regard to obtaining approval for a finance company status licence and
will get approval shortly,” Fernando told Daily News Business.
He said that both companies held Extraordinary General Meetings on
December 30 and obtained sanctions from shareholders for the proposed
amalgamation of the two entities. The Central Bank has written to us on
this move and we will receive approval shortly.
The purpose of this move is to bring down the cost of funds by way of
increasing efficiency on savings accounts and also branching out of its
service centres in rural areas to mobilise more funds for the company,
With the amalgamation of both entities, minority shareholders who
hold two shares of Asian Finance will receive seven shares of Ceylinco
Finance in place of the quoted shares. Ceylinco Finance will be upgraded
from a leasing company to an upgraded licence finance company status
with this move, he said.
The new shares to be allotted to the minority shareholders of Asian
Finance would have to be deferred until the new date of amalgamation.
This would be notified to the minority shareholders of Asian Finance
Limited as well.
When Ceylinco Finance is upgraded the new entity would be run as
Ceylinco Finance PLC and it will muster the strengths and opportunities
of both companies by positioning itself as the largest financial house
in the country.