Arpico Finance and Associated Motor Finance announce merger
Arpico Finance Company PLC (AFC) recently announced its intention to merge with Associated Motor Finance Company PLC (AMF) keeping in line with becoming one of the most stable and well-respected finance companies in Sri Lanka.
AFC and AMF have the proud recognition of being the second and fourth oldest registered Finance Companies in Sri Lanka with a combined existence of 123 years.
Commenting on the planned merger, Shanil Dayawansa – Managing Director - AFC stated that the Central Bank of Sri Lanka had already given its approval and as companies which are listed on the Stock Exchange have already informed the Colombo Stock Exchange about the proposed merger. He also mentioned that the entire process is being overseen by Ernst & Young and they hope to complete the merger process by the end of 2019. The two companies have already made significant progress towards this monumental milestone by aligning their core competencies, human capital, organizational cultures and management structure. The vast experience possessed by the senior management of the two entities has helped create a smooth transition and the final merged entity will provide much needed impetus to the finance industry and economy of the country.
Both AMF and AFC take pride in serving the clientele from the grassroot level to large corporates and has many a customer who have benefited from the financial assistance provided by them
AMF CEO T. M. A. Sallay and AFC CEO Chandrin Fernando are both working towards reaping the benefits of digital transformation and both entities are well geared to handle the requirements of the modern clientele.
The post merged entity will allow for further improvement in the stability and security as a custodian of trust to generations of Fixed Deposit holders. The trust placed by the depositors in the inception has been well upheld by them which have enabled these institutions to serve the third and fourth generations of the initial depositors of these pioneering institutions.
AFC specializes in the leasing of four wheelers which makes the number of facilities granted lesser but has to be done with detailed evaluations of the customer and the value of the leased asset etc. and AMF specializes in leasing of two wheelers which relies more on a process based model and the two companies would share its core strengths but will continue to have well diversified portfolios to ensure that the risks are well managed.
The reporting structure and monitoring which have been the fortes of AMF would be shared with the staff of AFC to further improve the management at macro level.
Once merged AFC will be one of the biggest finance companies in the island and would enable further expansion through the sharing of each other’s strengths.
The asset base of the consolidated balance sheet of the company would exceed Rs.26 billion and that would assist the company to achieve its vision of becoming one of the highest profit earning entities as well.
AFC already having made profits exceeding Rs.234 million for the 6 months ended September, 30, 2018 of the current financial year, looks to further strengthen itself with the addition of the operations of AMF and be geared to make a higher profit in the future.