Wednesday
18th Dec 2024
Dhivehi Edition
The State Trading Organization (STO) MD Shimad
The State Trading Organization (STO) has officially announced the cessation of its planned acquisition of Fenaka Corporation Limited, following a directive from the Ministry of Finance issued on November 24, 2024.
In a statement, STO confirmed that its Board of Directors reviewed the progress of the conditions outlined in the acquisition proposal before resolving to discontinue all activities related to the share acquisition. The decision has been communicated to all relevant stakeholders.
The acquisition, initially announced on August 25 by President Dr. Mohamed Muizzu, aimed to integrate Fenaka as an STO subsidiary to enhance operational efficiency and service delivery in the utility sector. However, with this directive, the takeover process has been put on hold indefinitely.
This development follows a Finance Ministry paper presented to the cabinet, highlighting the potential workforce adjustments under STO’s control, which was part of the broader plan to strengthen Fenaka’s operations and service efficiency.