"Gujarat Glass Ltd has acquired 12.764 million shares of Ceylon Glass amounting to approximately 46.06 per cent of the issued share capital of the said company," Gujarat Glass said in a letter to the Colombo Stock Exchange.

"Gujarat Glass will make a mandatory offer for all the remaining shares of Ceylon Glass in terms of the company takeovers and mergers code at a price of Rs 20.50 (29 US cents) per share," said the company, which is part of India's Piramal group.

"Gujarat Glass is not acting in concert with any person who owns shares in Ceylon Glass," the letter added. Brokers said earlier on Friday that Sri Lanka's DFCC Bank had sold a 39.49 per cent stake in Ceylon Glass to Gujarat Glass on the Colombo Stock Exchange.

They said some 12.7 million shares of Ceylon Glass were sold at an earlieragreed price of Rs 20.50 per share. DFCC still holds a 10 per cent stake or one million shares in Ceylon Glass, the government has some 7.9 per cent and Japan's Mitsui Corp 5.2 per cent. The rest is with the public.

The Gujarat Glass statement said the Indian firm had an option with DFCC to purchase as much as the 10 per cent stake in Ceylon Glass held by the development finance institution if it needed to obtain a 51 per cent stake. The 10-rupee Ceylon Glass scrip closed one rupee higher at 20.50 on Friday.