In a disclosure to the Colombo Stock Exchange (CSE), the board of MTD Walkers PLC yesterday informed that Lakma Holdings (Pvt.) Ltd led by Dr. Arosha Fernando has signed a share sale and purchase agreement to acquire 90 percent of the shareholding of the company from its Malaysian parent MTD Capital BHD.

A statement issued to the media by Dr. Fernando said the acquisition is subject to a legal due diligence by Nithya Partners, the leading law firm in Sri Lanka for corporate acquisitions and mergers and a financial due diligence by Price Waterhouse Coopers (PWC), a multinational firm with its headquarters in London, UK.

On May 6, 2020, Dr. Fernando was appointed to the board of MTD Walkers PLC as its Group Director by MTD Capital BHD of Malaysia and in three months, he has moved to acquire the entire group of MTD Walkers PLC, which currently has 26 subsidiary companies. This includes Walkers Shipyard, Northern Power Plant, Fort Heritage Hotel, Walkers Properties, CML Construction, etc.

Dr. Fernando is expected to assume duties as Chairman and Group MD/CEO of MTD Walkers PLC soon after the completion of the due diligence and planned acquisition.

Maduka Jayawardhana of the Corporate Advisory and Capital Markets Division at Merchant Bank of Sri Lanka (MBSL) is coordinating the said acquisition, on behalf of MBSL.

“In a strategic partnership with our UK-based investment firm, Lakma Holdings is currently in discussions of acquiring another major construction company, an automobile manufacturing firm, telecommunications service provider, a five-star city hotel and a resort hotel for Lakma Holdings, to become a leading conglomerate in Sri Lanka,” Dr. Fernando said.

“We intend to settle all the debtors in stages and restructure Walkers Group of Companies soon after the acquisition,” he added.  

Meanwhile, in a separate filing, MTD Walkers yesterday announced two new board appointments, representing Lakma Holdings.

Accordingly, Dr. Senaka Haripriya Arnold De Silva and Munhenage Lilani Kumari were 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.