President Mohamed Muizzu announced today that the government has initiated efforts to increase its stake in Dhiraagu, the nation’s oldest telecommunications provider, to 51 percent to regain majority ownership of the company.
Speaking at a press conference held at the President's Office, Muizzu stated that the necessary administrative procedures to facilitate this transfer of shares are already underway. However, he did not provide further details regarding the acquisition process.
Dhiraagu was established with the Maldivian government holding a 55 percent stake and the UK’s Cable & Wireless holding 45 percent. This structure changed in 2009 when the then-MDP administration sold a seven percent stake to Cable & Wireless for $40 million.
Following that transaction, the government’s shareholding decreased to 48 percent. In 2011, the government divested a further 6.2 percent of its shares to the public, transforming Dhiraagu into a public limited company.
After Dhiraagu went public, Cable & Wireless sold its shares in 2013 to Bahrain’s Batelco Group (now Beyon). Beyon currently remains the majority shareholder of the company.
Dhiraagu stands as the most valuable company in the Maldives. According to data from the Maldives Stock Exchange (MSE), the company’s market capitalization is valued at MVR 12 billion, approximately $776 million.
Last year, Dhiraagu reported a net profit of MVR 949 million from a total revenue of MVR 2.8 billion, representing a significant profit margin relative to its earnings.
