MTD Walkers sale to Ravi Wijeratne to not proceed

MTD Walkers yesterday announced that the sale of about 152 million shares or 90.78% 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% 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. 

It added that the purchase agreement has also lapsed and will have no continued impact on the parties. 

“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.”  

On 9 September 2019, in a filing to the Colombo Stock Exchange, MTD Walkers informed that it has received a letter from Wijeratne stating he has agreed with MTD Capital Bhd to purchase the majority shareholding of MTD Walkers. However, 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.