manusath-derana

MTD Walkers – Commercial Bank blocks Ravi Wijeratne’s takeover

October, 8, 2019

MTD walkers in a stock exchange filling yesterday (07) announced that they have received an enjoining order from the Commercial High Courts of Colombo preventing the company from being taken over by Ravi Wijeratne.

The order has been obtained by Commercial Bank of Ceylon PLC from the Commercial High Courts of Colombo preventing MTD Walkers (KAPI) or its holding company MTD Capital Bhd, from going through with the transaction or any similar transaction without approval by Commercial Bank until all outstanding dues to Commercial Bank are settled.

Last month MTD Walkers in a stock exchange filing said that Ravi Wijeratne was set to purchase a controlling stake of 90.78% of the company from its Malaysian parent MTD Capital Bhd.

Wijeratne had agreed to purchase 152,183,583 shares held by the company’s parent through a voluntary offer to be made to all the shareholders of the company.

MTD Walkers is a listed construction company engaged in infrastructure-related businesses.

More recently, MTD Walkers in a corporate disclosure announced its intention to transfer its fully owned subsidiaries Walkers Shipyards Limited, Northern Power Company Ltd., and Colombo Fort Heritage Company Ltd., to its parent MTD Capital Berhad but the attempt was prevented as several State and private banks, to which MTD Walkers owed billions of rupees sought and obtained Enjoining Orders against the said transfer.

Company has also failed to pay interest to debentures it released to the market in recent years whilst the shares are under watch list due to failure to comply with several Listing Rules.

As of the end of the March 31, 2018 MTD Walkers loan portfolio was over 18 billion to 19 local banks and finance companies and EXIM Bank Malaysia.