The troubled construction major, MTD Walkers PLC, yesterday said a share sale and purchase agreement entered into with its Malaysian parent was terminated, making the company’s future prospects bleaker. 

A stock market filing by MTD Walkers said the share sale and purchase agreement entered into by its majority shareholder, MTD Capital Bhd., with Lakma Holdings Private Limited in August, was terminated.

Lakma Holdings on August 20, 2020 agreed to purchase the entire shareholding of 152,183,583 or 90.78 percent held by MTD Capital Bhd. in MTD Walkers, subject to a legal due diligence and a financial due diligence by two independent expert firms appointed by them.

In line with this deal, individuals representing Lakma Holdings were appointed to the board of MTD Walkers. They were Lakma Holdings Managing Director Dr. Arosha Fernando, Dr. Senaka Haripriya Arnold de Silva and Lilani Kumari.

The CSE was informed yesterday that all three directors resigned from the MTD Walkers board, with effect from December 28, 2020.

MTD Walkers, the country’s largest construction company, has over Rs.40 billion in debt to over eight banks.