Richard Pieris Finance merges with Chilaw Finance | Daily News

Richard Pieris Finance merges with Chilaw Finance

Senior officials of Richard Pieris Finance Ltd. (RPFL) and Chilaw Finance PLC officials in Ramada hotel Colombo. Picture by Thushara Fernando

Richard Pieris Finance Ltd. (RPFL) amalgamated with Chilaw Finance PLC (CPF) last week. According to the merger, RPFL will take over all the assets and liabilities of CFP, which will cease to exist.

The merger will see Richard Pieris Finance, the only Finance Company of the Richard Pieris Group asset base grow by Rs. 16 billion with a projected growth of Rs. 1.6 billion Profit before tax by 2020.

“It will see a rapid growth of Rs. 1.6 billion in Profit before tax within the next three years and an asset base that will grow by Rs. 16 billion,” said K. CEO and Executive Director of Richard Pieris Finance, M. M. Jabir.

“Through this merger, we estimate the portfolio to be worth Rs. 27 billion and a customer base that will double to nearly 10,000 within the next three years,” he added.

The amalgamation will see a rapid expansion of the existing branch network to nearly 21 branches in the next few years. “There will be no staff retrench.”

“RPFL is also keen on launching new products such as the Entrepreneur development lending to cater to specific segments of the North Western province.”

Felix Fernandopulle, Chairman of RPFL noted, “at its core, the decision to join RPFL and Chi law Finance PLc was based upon a remarkably similar mission of providing unparalleled customer service and superior financial products to our loyal customers.

“The Board of Directors and I are extremely energized by the potential that exists in the affiliation with Chilaw Finance for our shareholders, customers and employees.”

The merger was approved by the Central Bank whilst a filing by the Colombo Stock Exchange in December last year briefly stated the imminent acquisition.

The deal was initiated under the Central Bank Financial Sector Consolidation Plan of 2014 which seeks to consolidate the financial landscape of the country.


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