Road Bid

April 12, 2007 (LBO) – MTD Construction Sdn Bhd, a Malaysian construction firm that bought a Sri Lankan listed company last week, is eyeing a big highway construction project planned in the island, an official said. The company is already in "advanced talks" with the government on building the Kandy-Colombo highway, said Asanga Seneviratne, from Asia Capital, the investment house which did last week's takeover deal, told LBO.

"MTD is planning on getting involved in the many infrastructure projects in the pipeline. They are looking at highway projects and have got the government contract to build 50,000 homes for public servants."

MTD Construction, a firm listed on the second board of the Malaysian stock exchange, paid 125 million rupees for Kapila Heavy Equipment, a dormant construction firm, with main shareholders, the Fonseka family, selling out.

MTD Construction is a wholly-owned subsidiary of MTD Capital, a big construction group.

It has experience in building highways and bridges, and their maintenance. It has won contracts in India, the Philippines, and Australia.

The proposed Kandy-Colombo highway is one of several multi-lane highway projects planned by the government to connec