Sept 24, 2008 (LBO) – Sri Lanka’s Ceylinco Finance said it plans to merge with its subsidiary Asian Finance in a seven for two share swap.
The company said in a stock exchange filing that the merger and share swap are subject to regulatory and shareholder approval.
Asian Finance Ltd shareholders will receive seven (ordinary shares of Ceylinco Finance for every two ordinary shares held by them in Asian Finance.
Any fractional shares arising from the swap will be settled by cash.
The statement said 1,094,345 ordinary shares of Ceylinco Finance will be issued to the minority shareholders representing 11 percent of the shares issued by Asian Finance.
The balance 89 percent of shares held by Ceylinco Finance in Asian Finance will be cancelled.