Shimad Ibrahim, Managing Director of State Trading Organization (STO), has been appointed as the new chairperson of Fenaka Corporation, which is set to merge with and become a subsidiary of STO.

This appointment comes as part of a major restructuring of state-owned companies.

The merger between the two entities is expected 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 Shimad's role as chairperson. Mohamed Nizam, Chief Financial Officer of STO, and Ahmed Mazin, State Minister at the Finance Ministry, were also appointed to Fenaka's board.

Fenaka Corporation publicly welcomed Shimad's appointment in a social media post.

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

STO first proposed the merger on August 15, following which the cabinet gave its approval on August 25, primarily due to Fenaka’s financial difficulties.

A significant portion of Fenaka’s debt is owed to the STO Group of Companies.

STO has stated that it will develop a plan to recover the debt and work toward making Fenaka profitable.