CBSL approves HNB Finance PLC and Prime Finance amalgamation
The Monetary Board of the Central Bank of Sri Lanka has approved the amalgamation of HNB Finance PLC and Prime Finance PLC with the amalgamated company being HNB Finance PLC, on December 8, 2021, under the Finance Companies (Structural Changes) Direction No. 1 of 2013, while considering the submission of the detailed amalgamation proposal submitted by both companies.
The union of these two key players in the country’s non-bank financial institute (NBFI) arena will give rise to a powerful synergy providing impetus to a diverse product and service offering.
Through this successful merger, HNB FINANCE will strengthen the relationship with the Prime Group, as the company is now equipped with innate knowledge and experience to further facilitate its venture into real estate financing.
While the controlling stake of 87.27 percent was acquired through the initial merger by crossing, the company moved to increase the stake by 9.37 percent by mandatory offer, as well as by another 0.51 percent by share market, giving HNB FINANCE a total stake of 97.15 percent. The remaining 2.85 percent is among outside minority shareholders.
HNB FINANCE’s existing and future customers can expect to benefit from an enhanced portfolio, efficient and easily accessible services through a combined branch network, a strengthened balance sheet and better distribution of risk with the addition of Prime Finance’s 93 percent asset-backed loan portfolio.
The anticipated combination of dynamism between the teams into one unit will also undoubtedly assist in accelerating the company’s plans for national expansion. Prime Finance’s expertise and indelible reputation within the sector combined with HNB FINANCE’s strengths, positions the company well to further its vision of adding value to the lives of all Sri Lankans.
