News & market updates

LB Finance announced a voluntary offer to acquire all 113,327,268 shares of Associated Motor Finance at Rs.50 per share, valuing the deal at about Rs.5.6 billion. Two major shareholders holding 65.6% have agreed and the Securities and Exchange Commission has approved the offer.

Colombo stock market opened the week higher as the ASPI rose 0.36% (77.31 pts) to 21,676.20, led by plantation counters and conglomerates; turnover was about Rs.4.2bn and foreigners were net sellers of Rs.15.6m.

L B Finance (LFIN.N0000) will acquire a 65.6% stake in Associated Motor Finance (AMF.N0000) for Rs. 3.7 billion; the Central Bank has directed the merger be completed by 31 March 2027.

L B Finance PLC will acquire a 65.6% stake in Associated Motor Finance PLC for Rs. 3.7 billion (74.3m shares at Rs.50 each) after CBSL approval, with amalgamation required by March 31, 2027. LB Finance confirmed the board decision; AMF said its deputy chairman has agreed to divest.

Colombo market closed marginally higher as ASPI rose 0.01% to 19,976 on turnover of Rs.4.46bn with net foreign inflow of Rs.498.3mn. Transportation led turnover driven by Digital Mobility Solutions Lanka (PKME) which rose to Rs.105.75, while AMF, LVEF, HNB, CTC, LLUB and BERU saw notable activity.

Associated Motor Finance Company PLC (AMF.N0000) posted Profit Before Tax of Rs. 1.78 billion for the year ended 31 March 2025 (up 122%) and Profit After Tax of Rs. 750 million (up 136%). The company reported strong lending, deposit and asset growth, improved ROE/capital ratios, and its board approved issuance of LKR 1.25 billion in listed unsecured subordinated bonds subject to regulatory approval.

Associated Motor Finance Company PLC reported FY2024/25 PBT of Rs. 1.78 billion (up 122% YoY) and PAT of Rs. 750 million (up 136%). Net interest income rose 53% to Rs. 3.28bn, lending grew 23% to Rs. 13.61bn, EPS doubled to Rs. 6.62, and the board approved a LKR 1.25bn subordinated bond issue (subject to approvals).

Associated Motor Finance Company (AMF.N0000) posted record FY ended 31 Mar 2025 results: PBT Rs.1.78bn (+122%) and PAT Rs.750m (+136%). EPS rose to Rs.6.62, Lanka Rating upgraded AMF to BB (Stable), and the board approved a proposed LKR 1.25bn listed subordinated bond issue.

Associated Motor Finance (AMF) reported PBT up 133% to Rs. 781 million and PAT up 135% to Rs. 393 million for the nine months ended 31 Dec 2024. Total assets were Rs. 20.39bn, loans Rs. 12bn, Tier II ratio 15.49%, liquid assets 31.54% of assets, Lanka Rating upgraded to BB (Stable), and the company plans to expand digital lending.

Associated Motor Finance Company PLC reported strong nine-month results to 31 Dec 2024: PBT rose 133% to Rs.781m and PAT rose 135% to Rs.393m, with loans, deposits, assets and capital ratios all improving. Lanka Rating upgraded AMF to BB (Stable) and the company plans to expand digital lending.

Associated Motor Finance Company PLC plans to raise LKR 1.25 billion by issuing up to 12.5 million listed, rated, unsecured, subordinated, redeemable high-yield bonds at LKR100 each (7.5m initial, 5m additional on oversubscription). The issue is subject to regulatory approvals and the company intends to list the bonds on the Colombo Stock Exchange.

Colombo bourse closed marginally lower: ASPI down 0.02% at 17,117.18 and S&P SL20 down 0.65% at 5,126.31, turnover Rs8.4bn and net foreign outflow Rs923.9m. Buying interest returned to banks and finance stocks after vehicle import relaxation, and construction names such as Access Engineering saw inflows.

Colombo Stock Exchange ASPI rose 0.77% (105.38 pts) to 13,718 as turnover reached Rs4.4bn. Major contributors were diversified financials, capital goods and food/beverage/tobacco, with heavy volumes and gains in Asia Asset Finance, Ambeon Capital, Hayleys, Central Finance, Lanka IOC and others; Sampath Bank fell and net foreign inflow was Rs47mn.

Colombo stocks slipped as the S&P SL20 fell 0.4% and the ASPI 0.2%, with turnover rising to Rs. 798 million aided by crossings. Banking counters (Commercial Bank, HNB, Sampath) and blue chips (JKH, CTC) led losses while Kelani Tyres gained and foreign investors were net buyers (+Rs.15.6m).

Colombo Stock Exchange closed down: All Share Index fell 0.21% to 11,458 and S&P SL20 fell 0.43% to 3,288; turnover was 797 million with a net foreign inflow of 15.5 million. Top foreign buying included Melstacorp and John Keells, while foreign selling hit Commercial Bank, Ceylon Cold Stores, Associated Motor Finance and Talawakelle; top turnover contributors were Commercial Bank, Dialog, Kelani Tyres, HNB and John Keells.