Industrial Asphalts’ controlling stake changes hands as Arcasia and ATX step in

A controlling stake in Industrial Asphalts (Ceylon) PLC is set to change hands, following a binding share sale and purchase agreement signed on July 7, 2026, according to a stock filing.

Industrial Asphalts (Ceylon) PLC Executive Director Govindasamy Ramanan has agreed to sell his 48.03 percent stake, comprising 1,800,693,010 ordinary voting shares, to Arcasia Investment & Trading (Pvt.) Ltd and ATX Partners (Pvt.) Ltd.

In a parallel agreement, the buyers will also acquire 80,000,000 shares, representing a 2.13 percent stake, from top shareholder Srikumar Balasubramaniyam. 

While the exact value of the transaction remains undisclosed, this collective acquisition of 50.16 percent of the total issued ordinary shares will trigger a voluntary offer to all remaining shareholders, under the Takeovers and Mergers Code. 

The specific offer price and terms of the transaction will be announced in due course, once the necessary approvals from the Securities and Exchange Commission of Sri Lanka are secured. Arcasia Investment & Trading and ATX Partners have established themselves as active investment vehicles within the Colombo Stock Exchange. The two private limited companies are known for their strategic market entries, notably their 2025 acquisition of a controlling stake in Alpha Fire Services PLC and their collaborative involvement in MyLand Developments PLC. 

Arcasia is primarily engaged in making and managing investments and trading operations, while ATX focuses on retail trade and related commercial operations. Their move to acquire Industrial Asphalts aligns with their broader strategy of taking significant positions in listed entities to drive corporate value.

Established in June 1964 as part of the country’s rapid industrialisation efforts, Industrial Asphalts originally experienced sustained exponential growth in its core bituminous products. However, this trajectory was severely disrupted during the 1983 civil commotion, which resulted in two of its operating plants being burned to the ground and the subsequent government acquisition of its freehold properties. 

The company was compensated with a perpetual lease for a property in Peliyagoda. 

Rising from these historical challenges, the firm has in recent years transitioned into an investment holding company, balancing its bitumen roots with the emerging equity opportunities. A major element of this transition involves unlocking the value of its prime asset, the Peliyagoda investment property, which sits on a 58-year remaining lease from the Urban Development Authority. 

On July 24, 2025, the company resolved to sell this property for Rs.1.31 billion to a designated buyer, a major transaction requiring the shareholder and Urban Development Authority approval.

Financially, the company has shown resilience, reporting a 115 percent surge in revenue to Rs.62.9 million and a 46 percent increase in net profit to Rs.27.8 million for the 2024/2025 financial year, largely buoyed by the fair value gains on the property and a revitalised equity portfolio. The entry of Arcasia and ATX is likely to accelerate the future trajectory of Industrial Asphalts as a formidable investment holding company. 

With the pending divestment of the Peliyagoda property expected to inject substantial liquidity into the firm, the new majority shareholders will have significant capital to deploy.