MTD Walkers to close business
View(s):MTD Walkers Plc is planning to sell its assets and wrap up operations, stock market analysts have said.
This has come on the wake of MTD Walkers announcing that the sale of about 152 million shares or 90.78 per cent of its stake to well-known businessman Ravi Wijeratne will not be pursued.
In a stock market filing, the construction company said that MTD Capital Bhd, Malaysia has informed them that the transaction will not be pursued, as there has been no forward movement on the deal.
“We have been informed by MTD Capital Bhd, Malaysia that the intended transaction in respect of the sale and purchase of 90.78 per cent of the issued shares of MTD Walkers Plc amounting to 152,183, 583 shares, held by them to Hewawasamge Ravindranath Srilal Wijeratne, the announcement of which was made by us to the Colombo Stock Exchange on 9 September 2019, will not be pursued as there has been no positive development or progress on the transaction,” the stock market filing said.
As the completion date stipulated in the Share Sale and Purchase Agreement (SSPA) has lapsed, the SSPA shall have no further effect on the parties, it said.
On 9 September 2019, in a filing to the Colombo Stock Exchange, MTD Walkers informed that it has got a letter from Mr. Wijeratne saying he has agreed with MTD Capital Bhd to buy the majority shareholding of MTD Walkers. But, just days before MTD Walkers announced that they had received an enjoining order from the Commercial High Courts of Colombo suspending the deal until it had settled outstanding loans to local banks. People’s Bank recently instituted action against MTD Walkers and its parent company MTD Capital Bhd of Malaysia before the Commercial High Court in relation to a corporate disclosure by MTD Walkers to the Colombo Stock Exchange on 9th September 2019 that MTD Capital Bhd intended to transfer its majority shareholding in MTD Walkers to a third party.