- The government plans to raise its Dhiraagu stake to 51 per cent from the current 41.8 per cent, requiring acquisition of shares including some held by BTC Islands Limited.
- President Muizzu announced the state will also buy Hitachi's 20 per cent stake in MWSC to achieve full ownership of the water and sewerage company.
- A 51 per cent Dhiraagu holding would have yielded about MVR 337.2 million in 2025 dividends, though purchase prices remain undisclosed.
The government is moving to expand state control over two major utility providers, with plans to secure a 51 per cent stake in Dhiraagu and acquire the remaining privately held shares in Malé Water and Sewerage Company (MWSC).
President Dr Mohamed Muizzu announced the decisions at a news conference on Monday, describing the companies as important national assets. He said work to increase the government’s ownership of Dhiraagu had begun and would be carried out at an accelerated pace.
The government currently owns 41.8 per cent of Dhiraagu. Reaching the announced target would require it to acquire an additional 9.2 percentage points from existing shareholders.
BTC Islands Limited, part of Bahrain-based technology group Beyon, currently holds 52 per cent of Dhiraagu, while the remaining 6.2 per cent is held by public investors. The government has not specified which shareholders it intends to purchase shares from.
As the public holding alone is insufficient to raise the state’s stake to 51 per cent, achieving the target would require at least part of the acquisition to involve BTC Islands Limited. The proposed transaction would replace the company as Dhiraagu’s controlling shareholder and return majority ownership to the state for the first time since 2009.
Dhiraagu was established in 1988 as a joint venture between the Government of Maldives, which held 55 per cent, and UK-based Cable & Wireless, which owned 45 per cent.
The government sold seven per cent of the company to Cable & Wireless for USD 40 million in 2009, reducing its stake to 48 per cent. A further 6.2 per cent was sold to the Maldivian public through Dhiraagu’s 2011 initial public offering, bringing the government’s holding down to its present 41.8 per cent.
Batelco acquired Cable & Wireless Maldives in 2013, gaining the 52 per cent holding that is now registered under BTC Islands Limited.
The planned acquisition also has financial implications for the state. Dhiraagu distributed MVR 661.2 million in dividends for 2025. Based on its existing stake, the government’s share of that distribution amounted to approximately MVR 276.4 million. A 51 per cent holding would have represented about MVR 337.2 million under the same distribution, although future returns would depend on the company’s performance and dividend decisions.
The President also announced that the government would purchase Hitachi Ltd’s 20 per cent stake in MWSC, giving the state full ownership of the water and sewerage company. The government currently owns the other 80 per cent.
Hitachi acquired 53,400 shares in MWSC for USD 16 million in January 2010 during the administration of former President Mohamed Nasheed. The government has not disclosed the proposed purchase price or whether an agreement has been reached with Hitachi.
A previous administration announced plans in 2017 to recover the foreign-held shares in both companies, but their ownership structures remained unchanged.
No timetable, financing arrangement or estimated cost has been announced for either transaction. These details will determine the effect of the acquisitions on public finances and the extent of the government’s future control over the companies’ management and investment decisions.
