LAKMA HOLDINGS TO TAKE OVER MTD WALKERS
Troubled real estate company MTD Walkers which has been facing legal issues for quite some time is finally to be taken over by a new buyer Lakma Holdings (Private) Limited led by Dr Arosha Fernando with hopes of reviving it.
The company in a filing to the Colombo Stock Exchange said that Lakma Holdings (Private) Ltd has agreed with MTD Capital BDH of Malaysia who are the majority shareholders to purchase their shareholding of 152,183,583 shares amounting to 90.78% of the issued shares subject to financial and legal due diligence.
On May 6, 2020, Dr. Fernando was appointed to the board of MTD Walkers PLC as a Group Director by MTD Capital BHD of Malaysia and he is expected to be appointed Chairman and Group MD/CEO once the takeover transaction is complete.
Meanwhile, in a separate filing, MTD Walkers announced two new board appointments, representing Lakma Holdings. Dr. Senaka Haripriya Arnold De Silva and Munhenage Lilani Kumari have been appointed as Independent Non-Executive Directors of MTD Walkers, with effect from August 21. Both Dr. De Silva and Lilani Kumari are Directors of Lakma Holdings
MTD Walkers Group currently has 26 subsidiary companies including Walkers Shipyard, Northern Power Plant, Fort Heritage Hotel, Walkers Properties, CML Construction, etc.
MTD Walkers is a listed construction company engaged in infrastructure-related businesses and was plagued by financial turmoil which resulted in losses for the financial years ended March 2018 and 2019.
The company has been embroiled in litigation with many local banks, and have had their shares suspended from trading at the CSE.
Lakma Holdings Private Limited is a manufacturer and supplier of an extensive, quality range of specialty food products including Herbs and Spices, Salt and Pepper, Cloves and Cinnamon.
MTD Walkers PLC is believed to have an asset base worth over Rs 50 billion, and is one of the largest construction companies in the country.
Earlier, two companies – Supreme Global and Anunine Holdings – had also shown interest in buying the company, but had later abandoned their plans.
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