Thursday Nov 28, 2024
Thursday Nov 28, 2024
Thursday, 9 May 2024 02:44 - - {{hitsCtrl.values.hits}}
The Boards of Directors of LB Finance PLC and its subsidiary, Multi Finance PLC, have resolved to amalgamate with the former as the continuing entity.
The move is in furtherance of the financial sector consolidation plan of the Central Bank and under
Section 239 of the companies Act-No.07 of 2007, subject to the regulatory approval and shareholders of both companies by way of Special Resolutions at Extraordinary General Meetings.
The in-principle approval of the Central Bank of Sri Lanka has been received for the amalgamation.
The shares of Multi Finance will not be converted to shares of LB Finance, instead, the shareholders of Multi Finance except L B Finance will be paid a cash consideration of Rs. 4.50 for each share held by the said shareholders in Multi Finance.
The cash consideration was determined pursuant to a valuation of the shares of Multi Finance carried out by its auditors, messrs KPMG, chartered accountants, based on the net book value of Multi Finance as of30 September 2023.
LB Finance said a further Announcement will be made on the dates of the Extraordinary General Meetings of the shareholders of both companies.
The Company is under watch list, and trading has been suspended since 13 October 2022, due to non-compliance with the capital requirements, as per the minimum core capital direction no. 2 of 2017, the auditor’s report incorporates an emphasis of matter.
LB Finance owns 64.76% stake in Multi Finance. Entrust Holdings is the second largest shareholder with 29.93% stake or 19 million shares. The public float is 35.22% held by 1032 shareholders.
