COLOMBO, 28 August 2026 – A significant development has emerged on the Colombo Stock Exchange (CSE) concerning Industrial Asphalts (Ceylon) PLC (IAC). The voluntary offer made by Arcasia Investment & Trading (Pvt) Ltd and ATX Partners (Pvt) Ltd (collectively, the “Offerors”) to acquire all issued and paid shares of IAC has officially been converted into a mandatory offer, effective 24th August 2026.
This conversion comes in terms of Rule 31(1)(a) of the Company Takeovers and Mergers Code 1995 (as amended in 2003) (the “Code”), following the Offerors securing a controlling stake exceeding 50% of IAC’s share capital through acceptances to their initial voluntary bid.
Background to the Offer
The initial voluntary offer by Arcasia Investment & Trading (Pvt) Ltd and ATX Partners (Pvt) Ltd was first announced on 24th July 2026, as per Rules 8 and 9 of the Company Takeovers and Mergers Code. Subsequently, an Offer Document detailing the terms of the voluntary bid was issued on 19th August 2026, inviting IAC shareholders to tender their shares.
Key Triggers for Conversion
The pivotal moment leading to the mandatory offer conversion occurred on 24th August 2026, when the Offerors received substantial acceptances from two key shareholders:
- Mr. Ramanan Govindasamy: Tendered 1,800,693,010 shares, representing 48.03% of IAC’s total shareholding.
- Mr. Srikumar Balasubramaniyam: Tendered 80,000,000 shares, representing 2.13% of IAC’s total shareholding.
These combined acceptances amount to 1,880,693,010 shares, constituting 50.16% of Industrial Asphalts (Ceylon) PLC’s issued shares. Crossing the 50% threshold legally obliges the Offerors to extend a mandatory offer to all remaining shareholders under Sri Lankan takeover regulations.
Implications of the Mandatory Offer
With the conversion to a mandatory offer, and as stipulated in the Offer Document, the offer has become unconditional as to acceptances. This means the Offerors are now legally bound to proceed with the acquisition of shares from all other IAC shareholders at the same offer price and terms previously outlined in the voluntary offer document.
The move signifies a decisive step towards consolidating control of Industrial Asphalts (Ceylon) PLC by Arcasia Investment & Trading (Pvt) Ltd and ATX Partners (Pvt) Ltd, potentially paving the way for new strategic directions for the company.
The announcement dated 25th August 2026, jointly signed by P.A. De Silva, Director of Arcasia Investment & Trading (Pvt) Ltd, and Sharad Sridharan, Director of ATX Partners (Pvt) Ltd, confirmed these developments to the Colombo Stock Exchange.
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