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CSE de-lists Arpico Finance shares

12 May 2021

Arpico Finance Company PLC (AFC) shares and securities were delisted from the official list of the CSE yesterday (11), according to a Colombo Stock Exchange (CSE) disclosure.  Accordingly, AFC shares were delisted due to the firm’s merger with Associated Motor Finance Company PLC (AMFC), in terms of Rule 4 (2) of the Rules made by the Securities and Exchange Commission of Sri Lanka (SEC), under Section 53 of the SEC Act No. 36 of 1987 (as amended) via Gazette Extraordinary No. 1215/2 dated 18 December 2001.  As per media reports, The Central Bank of Sri Lanka (CBSL) approved the planned merger of AMFC with (AFC) which was followed by a corporate disclosure published by AMFC which announced that the surviving company following the merger would be AMFC.   Thereby, it was also announced that constituting 5.98% of the issued shares of AFC, the shareholders of 444,890 shares of AFC, other than the 6,992,610 shares held by AMFC constituting 94.02%, will receive 76 ordinary shares of AMF for every 100 shares of AFC.   Thus, the shares held by AMFC of AFC were planned to be cancelled without payment of any consideration, in terms of Section 241 (3) (a) of the Companies Act No. 7 of 2007. In addition, AMFC also acquired 94% of the shares of AFC in October 2014.  AFC also announced a net loss of Rs. 168 million in the financial year 2020, on a total asset base of Rs. 13,434 million, as compared to a Profit After Tax (PAT) of Rs. 373 million on a total asset base of Rs. 15,947 million in the previous financial year, according to ICRA.  


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