Oct 15, 2009 (LBO) – Sri Lanka’s People’s Merchant Bank (PMB), an investment bank which is 39 percent owned by state-run People’s Bank, said it will acquire a finance company license by taking over a subsidiary. PMB said in a stock exchange filing that it has decided to take over the assets and liabilities of its subsidiary People’s Merchant Finance Company, formerly known as Silvereen Finance Company, a regulated firm.
People’s Merchant Finance Company (PMF), a finance company that accepts public deposits and does leasing and hire purchase, is a 99.9 percent owned subsidiary of PMB.
PMB said in a stock exchange filing that with the take over it will be able to accept deposits from the public upon the transfer of the finance company license held by PMF, to PMB.
This will lead to a reduction in the overall cost of its funds, the bank said.
“The business activities of both PMB and PMF will he consolidated to achieve reduced operational costs, increased benefits to customers and improved returns to shareholders,” the statement said.
The bank said the deal is subject to obtaining approvals from its Board of Directors, regulatory authorities and the shareholders of PMB.
PMB first acquire