The East Asian firm paid 23.50 rupees a share to buy the 60.6 million shares from founding siblings, Otara Gunewardene (27.8 percent) and her two brother Ajit (13.6 percent) and Ruchi (0.34 percent), the company said in a statement.
The new buyer will make an offer to buy out existing shareholders at the same price. ODEL stock has move up in recent days from around 17 to above 23 rupees on speculation of a take-over.
Otara Gunewardene will retain a 27.8 percent stake and remain its chief executive.
"The acquisition by Parkson Retail of a significant ownership in ODEL marks a new chapter in the evolution of the company," she said in a statement.
"Being part of a 22-year journey from a business I started from the boot of my car to becoming part of an international retail company is a great privilege.
"I am also happy to play a role in an infusion of foreign direct investment to Sri Lanka, while raising capital for the company’s growth.”
"For our customers, employees and shareholders, this development represents exciting new prospects as the ODEL brand will have more opportunities to maximize its potential and together with Parkson to explore new avenues to add value to the company.”
The firm will also make a 1 for 1 rights issue that will raise 2.899 billion rupees for expansion.