Seeks CB approval for amalgamation with Asian Finance:

Ceylinco Finance to be upgraded

Hiran H. SENEWIRATNE

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, he said.

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.