Arcasia, ATX to acquire 50.16% controlling stake in Industrial Asphalts

Thursday, 9 July 2026 05:53 - - {{hitsCtrl.values.hits}}

Buyers enter binding agreements; offer price and terms to be announced after regulatory approval

Arcasia Investment & Trading Ltd., and ATX Partners Ltd., have entered into binding agreements to acquire a controlling 50.16% stake in Industrial Asphalts (Ceylon) PLC, triggering a mandatory offer to the company’s remaining shareholders upon completion of the transaction.

In a filing to the Colombo Stock Exchange (CSE), Industrial Asphalts said the proposed acquisition is subject to the approval of the Securities and Exchange Commission (SEC) of Sri Lanka.

Under the agreements, Arcasia and ATX will acquire 1.8 billion ordinary shares, representing approximately 48.03% of the company’s issued share capital, from Director Ramanan Govindasamy. They have also agreed to purchase a further 80 million shares, or approximately 2.13%, from shareholder Srikumar Balasubramaniyam. The two were the top shareholders as of end-March 2026.

The two transactions will give the consortium ownership of 1.88 billion shares, equivalent to approximately 50.16% of the company’s issued ordinary shares.

The share prices ended yesterday Rs. 0.30 up at Rs. 0.80. The company reported net assets of Rs. 0.47 a share as at end-March 2026.

Pursuant to the Takeovers and Mergers Code 1995 (as amended), Arcasia and ATX intend to make a Mandatory Offer to acquire the shares held by all remaining shareholders other than Govindasamy and Balasubramaniyam.

The company said the offer price and other terms of the Mandatory Offer will be announced in due course after the SEC grants the necessary approval. The transaction value was not disclosed in the filing.