Colombo, Sri Lanka – 15 September 2026 – The voluntary offer made by Arcasia Investment & Trading (Pvt) Ltd and ATX Partners (Pvt) Ltd to acquire shares in Industrial Asphalts (Ceylon) PLC (CSE: ASPH) has officially concluded, with the offerors successfully securing a majority stake in the company. The offer, which commenced on August 21, 2026, closed on September 12, 2026.
According to an announcement made via G Corporate Services (Private) Limited, the Registrars to the Offer, the offerors received valid acceptances for a total of 1,880,693,010 shares, representing 50.16% of the issued and paid-up ordinary shares of Industrial Asphalts (Ceylon) PLC. This acquisition fulfills a crucial condition of the offer, which stipulated that the offerors must acquire more than 50% of IAC shares pursuant to the offer.
Offer Details and Shareholder Acceptance
The acceptances were received from two principal shareholders of IAC: Mr. Ramanan Govindasamy and Mr. Srikumar Balasubramaniyam. Both individuals had entered into binding agreements with Arcasia Investment & Trading (Pvt) Ltd and ATX Partners (Pvt) Ltd to sell their shares under the terms of the voluntary offer.
The offerors confirmed that they held no shares in Industrial Asphalts (Ceylon) PLC prior to the offer period and did not acquire any shares through other means during the offer period, ensuring all acquired shares were through the formal offer process.
Watch List Complication and SEC Intervention
However, the share transfer process has encountered a significant hurdle. Industrial Asphalts (Ceylon) PLC was transferred to the Colombo Stock Exchange’s (CSE) Watch List on September 7, 2026. This action was taken due to the company’s non-submission of its Annual Report for the financial year ended March 31, 2026.
The placement on the Watch List has triggered specific restrictions under the CSE Listing Rules. Specifically, Rule 7.5.e.(i)(7) prohibits executive directors, such as Mr. Ramanan Govindasamy (an executive director of IAC), from transacting in the company’s shares while on the Watch List, unless prior approval is obtained from the Securities and Exchange Commission of Sri Lanka (SEC).
In a letter dated September 11, 2026, the SEC informed the offerors that it would not grant approval for the transfer of shares from persons restricted under Rule 7.5.e.(i)(7) until Industrial Asphalts (Ceylon) PLC remedies the non-compliance that led to its placement on the Watch List.
Next Steps for the Offerors and IAC
Despite successfully meeting the majority acquisition threshold, the completion of the share transfers remains contingent on IAC addressing its regulatory non-compliance. The offerors, through G Corporate Services (Private) Limited, have requested the CSE to make an official announcement on the trading floor regarding the closure of the offer, in accordance with Rule 24 of the Company Take-overs and Mergers Code 1995 (as amended in 2003).
The situation now places Industrial Asphalts (Ceylon) PLC under increased scrutiny to promptly resolve its outstanding Annual Report submission to facilitate the full conclusion of this significant corporate transaction.
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