Lanka Credit and Business Finance amalgamates with Lanka Co-operative Leasing Company

Thursday, 17 November 2022 01:24 - - {{hitsCtrl.values.hits}}

The agreement of amalgamation between LCB Finance and Cooperative Leasing Company by the Chairmen of both companies

Lanka Credit and Business Finance PLC (LCBF), a fast-growing financial service provider in Sri Lanka, will be amalgamating with a longstanding Lanka Co-operative Leasing Company Ltd. (CLCL), a pioneering leasing company in the cooperative sector.

The surviving entity after the merger will be Lanka Credit and Business Finance PLC. The Term Sheet in this regard was executed by the respective Chairmen of both companies on 9 November as the first step towards the amalgamation process,

CEO/Executive Director K.G. Leelananda said that the entity plans to change its business name to include the prestigious name “Co-operative” by renaming itself as “Lanka Co-operative Business Finance PLC”, having met the mandatory statutory and CSE requirements and he commented on the amalgamation plans follows. The amalgamation is planned to be finalised before end-January 2023, subject to the shareholders of both companies approving the said amalgamation at an Extraordinary General Meetings as planned. The Monetary Board of the Central Bank of Sri Lanka has granted approval in-principle for the proposed amalgamation in November 2022. The amalgamation is based on the financial sector consolidation master plan of the Monetary Board of the Central Bank of Sri Lanka introduced in 2014. To meet the regulatory requirements the Board of Directors of both companies has resolved to the amalgamation in line with the said consolidation master plan. The amalgamation would result in a combined asset base of approximately Rs. 7 billion with an enhanced core capital ratio providing a strong base for future business growth and profitability of LCBF.