Managing Director of STO Appointed Chairperson of FENAKA Amid Restructuring

Managing Director of the State Trading Organization (STO), Shimad Ibrahim, has been appointed as the Chairperson of FENAKA Corporation, as part of a the restructuring of state-owned enterprises. 

FENAKA, which is facing financial difficulties, will be merged with and made a subsidiary of STO, with the merger set to take effect early next year.

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The appointment was made today by the Privatization and Corporatization Board (PCB), which also named Mohamed Nizam, STO’s Chief Financial Officer, and Ahmed Mazin, State Minister at the Finance Ministry, as members of Fenaka’s interim board. The board, which will oversee the merger, is composed of members from STO, the Finance Ministry, and the Environment Ministry.

The merger proposal was initiated by STO on August 15 and approved by the Cabinet on August 25, driven largely by Fenaka’s ongoing insolvency issues. A significant portion of Fenaka’s debt is owed to the STO Group of Companies.

STO has announced plans to develop a strategy to recover the outstanding debt and restore Fenaka’s financial health.