LB Finance PLC, a subsidiary of Vallibel One PLC, has announced plans to acquire a controlling stake of 65.6% in Associated Motor Finance Company PLC (AMF) for a consideration of Rs. 3.7 billion.

The acquisition, approved by the Governing Board of the Central Bank of Sri Lanka (CBSL) on 23 September, will see LB Finance purchase 74.3 million shares of AMF at Rs. 50 per share from John Paulu Irugalbandarage Nalatha Dayawansa, Deputy Chairperson and Executive Director of AMF, and Imperial Import and Export Co. (Pvt) Ltd., a family-owned entity.

LB Finance confirmed the decision at a special Board meeting on Friday (26) noting that the modality of the transaction is still under discussion and will be announced later.

The CBSL approval also requires that AMF be amalgamated with LB Finance on or before 31 March 2027.

In a separate disclosure, AMF confirmed that while it has not yet received formal communication from LB Finance, its Deputy Chairperson has already agreed to divest his stake.

LB Finance is part of Vallibel One PLC, which manages a diverse portfolio across seven key industries. Vallibel One’s major shareholder is business magnate Dhammika Perera, who owns 63.47% of its share capital.