HNB Finance PLC (COSE:HNBF.N0000) made an offer to acquire 12.73% stake in Prime Finance PLC (COSE:GSF.N0000) from Mahinda Perera and others for approximately LKR 310 million on December 20, 2021. Under the terms HNB Finance PLC will acquire 15.39 million shares for LKR 20.1 per share. In a related transaction, HNB Finance PLC agreed to acquire 87.27% stake in Prime Finance PLC by way of a crossing.

Post completion of such mandatory offer, it is proposed that HNB Finance PLC will amalgamate with Prime Finance PLC with HNB Finance PLC being the amalgamated entity, in furtherance of the proposal of the Central Bank of Sri Lanka to consolidate Non-Bank Financial Institutions. As on December 23, 2021, HNB Finance PLC completed the acquisition of 87.27% stake from Prime Lands (Pvt) Ltd. The Central Bank of Sri Lanka has granted its approval for the acquisition and approval in principle for such amalgamation. On March 15, 2022, the Board of Directors of Prime Finance PLC has, decided that Prime Finance be amalgamated with HNB Finance and an extraordinary general meeting of Prime Finance will accordingly be held on April 27, 2022, as a virtual meeting for the purpose of the shareholders considering and if thought fit, approving the amalgamation.

As of April 27, 2022, the transaction has been approved by the shareholders of Prime Finance. The offer is unconditional. offer will open on January 18, 2022 and closes on February 8, 2022.

The effective date of the amalgamation will be May 12, 2022. FJ & G de Saram acted as the legal advisor to HNB Finance PLC. S S P Corporate Services (Private) Limited acted as registrar in the Offer.