Arpico Finance reaffirms its merger with AMF

With an ambitious drive to be one of the successful finance companies in the country, the planned merger between Arpico Finance Company PLC (AFC) and Associated Motor Finance Company PLC (AMF) does not come entirely as a surprise, Arpico Finance said in a media release. 

“Despite the transaction making little market overlap sense on the surface, it certainly hints at future strategic plans that will open doors to build one strong entity which will be safer for its depositors. It will also provide a pathway to enhance and strengthen its current capital position, complying with the objectives of the regulatory authorities,” it said.

The merger is also expected to enhance value through consolidating and administrating the operational infrastructures more efficiently while adding more value to all stakeholders, enabling the merged entity to emerge as a considerable force in the finance sector of Sri Lanka.
In his comments, Chandrin Fernando, CEO of Arpico Finance Company PLC said that formalities on the merger with its major shareholder AMF have been on-going successfully. The operational environment of the two companies is ready to proceed with the legal merger and it’s in progress.
Associated Motor Finance Company PLC CEO T.M.A Sallay added: “We anticipate the merger with AFC to be completed very soon. This will undoubtedly improve overall synergies, leveraging on each other’s key strengths and competencies.” 

AMF acquired 94 per cent shares in AFC in October 2014. Both the companies are regarded as two of the oldest finance companies in the country, achieving a consistent growth in a highly challenging and turbulent environment. AFC continues to rank as one of the leading licensed finance companies with the longest history in Sri Lanka with AMF following closely, claiming fourth position.