Associated Motor Finance buys 40.59% in Arpico Finance
H.D.H Senewiratne hsenewiratne@yahoo.com
The Supreme Court in a landmark decision restrained Richard Pieris Arpico Finance Limited from using the words “Arpico Finance ” as part of its trade name, upholding the Interim Injunction granted by Justice M.C.B. Moraes of the Commercial High Court on July 30, 2013.
After protracted argument in Case No.SC (CHC) Appeal 41/2013 in the Supreme Court, judgment was delivered on Monday (September 29) by Justice B.P. Aluvihare P.C. with Justice Priyasath Dep P.C. and Sarath De Abrew agreeing.
A.R. Surendran, P.C. with Shivaan Kanag-Isvaran,N. Kandeepan and Jude Dinesh instructed byNeelakandan & Neelakandan, Attorneys-at-Law appeared for the Plaintiff-Respondent, Arpico Finance Co. while Harsha Cabral, P.C. with Budhikka Illangathilake and Nishan Premathiratne instructed by Messrs Julius and Creasy, Attorneys-at-Law appeared for the defendant -appellant, Richard Pieris Arpico Finance Limited.
The plaintiff-respondent, Arpico Finance Co. in its submissions said it is the only company in Sri Lanka carrying on the business under the trade name “Arpico Finance” in the financial services sector since 1951 and that it is one of the oldest existing finance company in Sri Lanka with an unblemished record.
Meanwhile, Associated Motor Finance Company has bought more than 3 million shares of Arpico Finance Company at Rs. 66 per share. This is 40.59 percent the total number of shares in issue in Arpico Finance Company, a stock brokering company said.
With Associated Motor Finance Company already holding 55,000 shares in Arpico Finance, the current purchase increases its stake to 3,073,617 shares, an increase from 0.75 percent to 41.33 percent of the total shares issued in Arpico Finance Company PLC.
Where the rationale of the consolidation was explained to bankers and finance company officials as well as auditors and other concerned parties, the CB also held one-on-one meetings with almost all “boards of directors and senior management of the local banks and finance companies with the expectations of the consolidation process was further clarified and specific issues pertaining to particular institutions were discussed in detail”.
The statement said the CB informed the banks and Non- Banking Finance Institutions s to approach the consolidation process in a professional manner by seeking specialized IT, Legal, Tax and HR services in order to ensure the objectivity and integrity of the process. In keeping with the request of the CB, banks and Non- Banking Financial Institutes agreed to submit their preliminary proposals by March 31,2014.
“Associated Motor Finance company was started in 1962, which is the fifth oldest company in the country.
Therefore, they have a lot of plans in the future with this merger”, its Chief Executive Officer T.M.A Salley said.
Arpico Finance Company was incorporated as an associate company of renowned Richard Peiris Group on May 1, 1951 and is the second oldest finance company in Sri Lanka.
Central Bank's consolidation is aimed at reducing by half the number of finance companies through mergers and acquisitions.
www.dailynews.lk
The Supreme Court in a landmark decision restrained Richard Pieris Arpico Finance Limited from using the words “Arpico Finance ” as part of its trade name, upholding the Interim Injunction granted by Justice M.C.B. Moraes of the Commercial High Court on July 30, 2013.
After protracted argument in Case No.SC (CHC) Appeal 41/2013 in the Supreme Court, judgment was delivered on Monday (September 29) by Justice B.P. Aluvihare P.C. with Justice Priyasath Dep P.C. and Sarath De Abrew agreeing.
A.R. Surendran, P.C. with Shivaan Kanag-Isvaran,N. Kandeepan and Jude Dinesh instructed byNeelakandan & Neelakandan, Attorneys-at-Law appeared for the Plaintiff-Respondent, Arpico Finance Co. while Harsha Cabral, P.C. with Budhikka Illangathilake and Nishan Premathiratne instructed by Messrs Julius and Creasy, Attorneys-at-Law appeared for the defendant -appellant, Richard Pieris Arpico Finance Limited.
The plaintiff-respondent, Arpico Finance Co. in its submissions said it is the only company in Sri Lanka carrying on the business under the trade name “Arpico Finance” in the financial services sector since 1951 and that it is one of the oldest existing finance company in Sri Lanka with an unblemished record.
Meanwhile, Associated Motor Finance Company has bought more than 3 million shares of Arpico Finance Company at Rs. 66 per share. This is 40.59 percent the total number of shares in issue in Arpico Finance Company, a stock brokering company said.
With Associated Motor Finance Company already holding 55,000 shares in Arpico Finance, the current purchase increases its stake to 3,073,617 shares, an increase from 0.75 percent to 41.33 percent of the total shares issued in Arpico Finance Company PLC.
Where the rationale of the consolidation was explained to bankers and finance company officials as well as auditors and other concerned parties, the CB also held one-on-one meetings with almost all “boards of directors and senior management of the local banks and finance companies with the expectations of the consolidation process was further clarified and specific issues pertaining to particular institutions were discussed in detail”.
The statement said the CB informed the banks and Non- Banking Finance Institutions s to approach the consolidation process in a professional manner by seeking specialized IT, Legal, Tax and HR services in order to ensure the objectivity and integrity of the process. In keeping with the request of the CB, banks and Non- Banking Financial Institutes agreed to submit their preliminary proposals by March 31,2014.
“Associated Motor Finance company was started in 1962, which is the fifth oldest company in the country.
Therefore, they have a lot of plans in the future with this merger”, its Chief Executive Officer T.M.A Salley said.
Arpico Finance Company was incorporated as an associate company of renowned Richard Peiris Group on May 1, 1951 and is the second oldest finance company in Sri Lanka.
Central Bank's consolidation is aimed at reducing by half the number of finance companies through mergers and acquisitions.
www.dailynews.lk
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