Business

Govt shares in state-owned MTCC increases

The government's stake at Maldives Transport and Contracting Company (MTCC) increases as the corporation initiated 'rights issue' managed to hike up state's shares in it.

MTCC's share structure changed after the company announced a rights issue open for interested parties to purchase shares around the end of last year. The move came as a means to adjust settlement for USD 11 million loan acquired by the corporation from state for the construction of the massive hopper suction dredger - which had since reached Maldives waters.

The transport and contracting company opened share slots worth MVR 5 million, but by the end of its rights issue window a total of 4,334 shareholders had purchased MVR 188.3 million worth of shares more than 3 million short of expected value.

The government initially had 47.8% stake at MTCC while the remainder was apportioned off to general shareholders of the now dissolved Maldives Shipping Limited - a state owned venture.

With the rights issue the government owns 64.20% of MTCC shares which values up to 5,160,360.00 while MNSL reserves a 4.65% which totals to 373,920 shares. The remaining 31.15 is distributed among general shareholders with its total reaching 2,503,469.00 shares.

The corporation's financial reports indicate the state owned ventured had raked in MVR 67 million as net profit by end of fourth quadrant in 2017 while it had done business worth of MVR 385.1 million within the same quarter.