Merchant Bank of Sri Lanka PLC (COSE:MBSL-N-0000) agreed to acquire remaining 59% stake in MCSL Financial Services Limited on March 3, 2014. In a related deal, Merchant Bank of Sri Lanka PLC (COSE:MBSL-N-0000) agreed to acquire remaining 32% stake in MBSL Savings Bank Limited in stock on January 30, 2013. After the merger, Merchant Bank of Sri Lanka would be the surviving entity. One voting share in Merchant Bank of Sri Lanka will be allotted to shareholders for every 2.35 voting shares held in MCSL Financial Services. A total of 30.9 million shares of Merchant Bank of Sri Lanka will be allotted for both MCSL Financial Services Limited and MBSL Savings Bank Limited as consideration.

As of June 26, 2014, the Board of Directors of Merchant Bank of Sri Lanka and MCSL Financial Services has resolved the merger. As of August 27, 2014, extraordinary general meeting of Merchant Bank of Sri Lanka is scheduled to be held on October 13, 2014 to seek the necessary approvals of shareholders for the deal. The deal is also subject to the approval of Stock Exchange for in principle listing of shares and the approval of Central Authority of Srilanka. As of October 13, 2014 Shareholders of Merchant Bank of Sri Lanka PLC and MCSL Financial Services Limited approved the transaction. The deal is expected to close on first quarter of 2015.

Merchant Bank of Sri Lanka PLC (COSE:MBSL-N-0000) completed the acquisition of remaining 59% stake in MCSL Financial Services Limited on January 1, 2015.