The State Trading Organisation (STO) has announced its decision to discontinue the acquisition of shares in Fenaka Corporation Limited. This move follows a directive issued by the Ministry of Finance on November 24, 2024.

The STO Board of Directors, after reviewing the progress of conditions outlined in the acquisition proposal, resolved to cease all activities related to the transaction. The decision, made official on November 28, 2024, emphasises STO's compliance with the Ministry's directive and commitment to aligning its operations with Government policies.

Fenaka Corporation Limited, a state owned entity, provides utility services across the Maldives. The Government initially planned to transfer Fenaka to STO in a bid to resolve the utility's financial difficulties. However, details regarding the specific reasons for the Ministry's directive to discontinue the acquisition remain undisclosed.

As an alternative, the Government’s budget proposal for the upcoming year suggests merging Fenaka and STO, replacing the earlier acquisition plan. According to the Finance Ministry, a final decision on the proposed merger will be made next year.

Through the announcement, STO has confirmed its compliance with the directive and notifies stakeholders and all relevant parties of the decision. Adjustments to STO’s strategic plans are expected in due course.

This development reflects a change in STO’s approach to its state partnership initiatives, prompting interest in how it may influence Fenaka's operational direction and the broader public utilities sector.