The Maldives Tourism Development Corporation (MTDC), a public company operating within the tourism sector, has scheduled its Annual General Meeting (AGM) for August 31.
According to an announcement by MTDC, the meeting will be held at 8:30 pm at the Hotel Jen ballroom. Shareholders and proxy holders can attend the meeting in person or participate online via the Maldives Securities Depository’s "FahiVote" platform.
The announcement of the AGM comes amid controversy regarding a potential deal to sell the head lease of Gaafu Dhaalu Magudhuvaa, currently held by MTDC, to the Turkish firm Ahmet Aydeniz.
Ahmet Aydeniz is the company that sub-leased Magudhuvaa from MTDC and developed the island into the resort currently operating as Ayada Maldives. Under the agreement between the two parties, the Turkish firm is required to pay MTDC millions of dollars in lease rent every quarter.
MTDC holds the head lease for Magudhuvaa until 2031. Relinquishing the lease prematurely would result in a projected loss of $20 million in revenue for the corporation.
Since the issue surfaced, MTDC has denied any attempts to sell its assets, including Magudhuvaa. At the time, the company maintained that no such transactions were underway.
Despite these denials, MTDC has decided to propose a rights issue to sell additional shares to its shareholders. The company's board has approved presenting this proposal to shareholders at the upcoming AGM later this month.
Sources familiar with the matter told Adhadhu that the move to issue additional shares is intended to increase the government’s majority stake in the company, potentially facilitating a deal to sell the Ayada lease at an undervalued price.
In addition to Magudhuvaa, MTDC’s current revenue-generating properties include Kihavah Huravalhi in Baa Atoll, where Anantara Kihavah Villas is located. The company’s ongoing projects include the development of Haa Dhaalu Naagoashi, funded by a loan from the Bank of Maldives, and an office building currently under construction in Hulhumalé.
