Shimad appointed chairperson of Fenaka amid merger

Shimad Ibrahim, the managing director of State Trading Organization (STO), has been was appointed as the chairperson of Fenaka Corporation – which is being merged with and made a subsidiary of STO, as part of a major reshuffle of state-owned companies.

The merger between STO and Fenaka is set to take effect at the beginning of next year.

On Sunday, the Privatization and Corporatization Board (PCB) made three appointments to Fenaka’s interim board, including the appointment of Shimad as the corporation’s chairperson. The PCB also made two more appointments to Fenaka Corporation’s board; Mohamed Nizam, the chief financial officer of STO, and Ahmed Mazin, a state minister at the Finance Ministry.

The members of the interim board of Fenaka during the merger process are appointed by STO, Finance Ministry, and Environment Ministry.

STO had proposed the merger on August 15. The cabinet gave its go-ahead on August 25 – mainly due to Fenaka’s insolvency issues.

A large chunk of Fenaka’s debt obligations is towards the STO Group of Companies.

STO has said it will make a plan to recover the outstanding debt and make Fenaka profitable.