Vallibel One bought 51 percent of Delmege, and Royal Ceramics, a subsidiary, 20 percent while Vallibel chairman Dhammika Perera, and its executive deputy chairman Nimal Perera, bought 10 percent each.

Another five percent of Delmege was bought by Tharana Thoradeniya, a director of Royal Ceramics and the balance four percent by A M Weerasinghe, Royal Ceramics' chairman.

The acquisition was made through the purchase of Lewis Brown & Company, which controls the Delmege group.

Perera told LBO the new buyers would take Delmege Forsythe public soon.

He said Delmege Forsythe had prime land in Sri Lanka's capital valued at two billion rupees.

The take-over of Delmege comes just ahead of an initial public offer of Vallibel One which is opening on June 21 to raise 532 million rupees by selling 21 million shares at 25 rupees a share.

It had a private placement early in 2011 also at 25 rupees and raised 4.9 billion rupees. Among the firm's assets are listed Royal Ceramics, LB Finance and Sampath Bank.

Vallibel One is also planning to build 50 million dollar hotel in the island's west coast.

Update IV