Associated Motor Finance Company PLC (COSE:AMF.N0000) agreed to acquire remaining 5.98% stake in Arpico Finance Company PLC (COSE:ARPI.N0000) from a group of shareholders for approximately LKR 120 million on October 20, 2020. Under the terms, Associated Motor will issue 76 shares for every 100 shares of Arpico. Associated Motor Finance Company currently holds 94.02% stake in Arpico. any shareholder whose shareholding is not a multiple of 25, will be allotted fractional shares. Any fractional shares arising based on the aforesaid proportion will be settled in cash at INR 162/83 per share within five market days of the issue of new ordinary shares. Post completion, Arpico Finance Company will amalgamated with Associated Motor Finance and the name of amalgamated entity is Associated Motor Finance company Plc and Arpico Finance PLC, which would not survive the amalgamation, will be removed from the Official List of the CSE. The numbers of shares to be issued by amalgamated entity is up to 0.34 million shares. J.P.I.S. Dayawansa and J.P.I.N. Dayawansa are the Managing Director and an Executive Director respectively of Arpico Finance Company PLC (Amalgamating Company).

Transaction is subject to approval of Colombo Stock Exchange for issuance and listing of consideration shares and approval from shareholders of Associated Motor and Arpico along with approval of lenders. On December 7, 2020, The board of Associated Motor Finance resolved to recommend to the shareholders of the companies, to amalgamate AFC with AMF and for the said 338,117 new shares of AMF is fair and reasonable to AMF and to the existing shareholders of AMF.As of December 22, 2020, Central Bank of Sri Lanka approved the transaction. As of December 30, 2020, based on the approval granted by the Monetary Board of the Central Bank of Sri Lanka in 2014, Associated Motor Finance Company PLC will proceed with merger. An Extraordinary General Meeting will be held on March 22, 2021, for the purpose of passing the requisite Special Resolutions for the proposed amendment to the Articles of Association. The transaction is approved by the shareholders of Associated Motor Finance Company PLC. Transaction is expected to complete by March 31, 2020. Ernst and Young Transaction Advisory Services (Pvt) Ltd acted as financial advisor to Associated Motor Finance in transaction.

Associated Motor Finance Company PLC (COSE:AMF.N0000) completed the acquisition of remaining 5.98% stake in Arpico Finance Company PLC from a group of shareholders on April 1, 2021. Arpico Finance Company PLC with effect from April 1, 2021, amalgamated with Arpico Finance Company PLC, subsidiary of Associated Motor Finance Company PLC. From April 1, 2021 onwards, Arpico Finance Company PLC ceased to exist, and Associated Motor Finance Company PLC continues as the remaining entity.