6 October 2020 09:10 am
The Securities and Exchange Commission (SEC) yesterday revealed that engineering and infrastructure company, MTD Walkers PLC is yet to settle the aggregate fine imposed for not complying with the listing rules.
Speaking to Mirror Business, the capital market regulator confirmed that the company at default highlighted in its 2019 annual report is the entity that was acquired recently (90 percent) by business magnate Dr. Arosha Fernando, via a Share Sale and Purchase Agreement.
According to the SEC, MTD Walkers PLC and its board of directors were issued Notices of Actions for the violation of the listing rules of the Colombo Stock Exchange (CSE), due to the non-disclosure of rating downgrades and for a misleading disclosure, with regard to a related party transaction.
MTD Walkers had made applications to compound the matter to the SEC, after which a directive was issued to the company to pay a fine of Rs.36.3 million to the Compensation Fund of the commission. Despite the announcement of decision, no efforts to settle the fines have been made as yet, the SEC said.
In September 2017, MTD Walkers PLC first filed with the CSE its status of not being compliant with the listing rules, where it had a float-adjusted market capitalisation of Rs.488 million, a public holding of 9.20 percent and 2,403 shareholders.
The current status of the 166-year-old company, as per a filing to the CSE in September 2020, is that it has an existing float-adjusted market capitalisation of Rs.210 million, a public holding of 8.5 percent and 2,580 public shareholders.
The last published annual report of the company is for the financial year 2017/2018, where the challenges faced by the group in implementing large-scale infrastructure projects were acknowledged.
MTD Walkers PLC is the seventh oldest company in Sri Lanka and has a portfolio of infrastructure-related businesses, including civil engineering, heavy engineering, electrical engineering, pile construction, power generation, real estate development, marine engineering and trading of heavy equipment.