The Central Bank has granted approval for the amalgamation of Clilaw Finance with Richard Pieris Finance, by taking over all the assets and liabilities of Chilaw Finance.
Following the approval granted by Central Bank on December 5, the Board of Directors of Richard Pieris Finance has approved the amalgamation proposal on December 9,2016.
Richard Pieris Finance is in control of the shareholding and the management of Chilaw Finance and as per the proposal, the shares of Chilaw Finance will not be converted into shares of Richard Pieris Finance.
Remaining shareholders who still holds 9.99 percent of Chilaw Finance will be paid 22.50 rupees per share and thereafter all the shares of ChilawFinance is to be cancelled.
Under the 2014 financial sector consolidation plan, Richard Pieris Finance acquired 81.77 percent of Chilaw Finance at 26.50 per share on the trading floor in 2014.
After the obligatory mandatory offer, the shareholding of Richard Pieris Finance increased to 90.09 percent.
It is the intention of Richard Pieris Finance to acquire 100 percent of Chilaw Finance subject to necessary regulatory and shareholder approvals.The amalgamation process is to be completed by March 31,2017 in compliance with the financial sector consolidation plan. (LBO)
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