Both Securities and Exchange Commission (SEC) and the Colombo Stock Exchange (CSE) are concerned about the recent unprecedented price hike of MTD Walkers PLC (Walkers), whose majority shareholder is Malaysian-based MTD Capital Bhd, according to sources close to the regulators.
“They are conducting the preliminary examinations, because this company's share price has jumped from Rs. 130 to Rs. 450 recently,” a source who did not wish to be named told the Business Times.
However, MTD officials in an e-mail statement to Business Times said that as Walkers complied with all disclosure obligations, there have been no inquiries from the SEC and the CSE in this regard.
The statement also said that the company is evaluating various options of restructuring the group investments in Sri Lanka. A senior official at Walkers said that the holding company has plans to bring in all MTD Capital's investments under Walkers. "MTD Capital has many investments and firms ranging from power, road construction, mechanical engineering, air-conditioning and refrigeration, plantation and machinery together with heavy foundation. We are looking to bring all this under Walkers, thereby restructuring the company," the official said.
He noted that this move will give a better standing to MTD Capital. “It is still under discussion, but if done we can grow as a group and consolidate all our investments,” he said. MTD Capital entered the Sri Lankan share market by purchasing a majority stake in Kapila Heavy Equipments PLC, the holding company of the Walkers Group of Companies.