Ceylinco Finance said this week that its Board of Directors has decided that the company will amalgamate with its subsidiary Asian Finance Ltd subject to the final approval of the Central Bank of Sri Lanka in the form of a share swap.
Under this swap Asian Finance shareholders will receive seven (7) ordinary shares of Ceylinco Finance for every two (2) ordinary shares held by them in Asian Finance (7:2), the Ceylinco Finance statement said.
The number of ordinary shares to be issued is upto 1. 09 million of Ceylinco Finance to the minority shareholders representing 11% of the shares issued by Asian Finance while the balance 89% of shares held by Ceylinco Finance in Asian Finance will be cancelled, the statement said.
The company said the issue of shares under share swap is subject to the proposal being approved by shareholders at an EGM (extra-ordinary general meeting).