Govt’s RM1.1bil lifeline not a ‘blank cheque’ for Sapura Energy

Free Malaysia Today

The RM1.1 billion cash injection is a loan, not a grant, and comes with strict conditions.   Read More: https://www.freemalaysiatoday.com/posts/preview/?p=WkxNdmc5RnJzQ0tYNU10REFidFp1NjRBOEQ4anRzbldBb3hmZ3ZSbmFEUT0=    Free Malaysia Today is an independent, bi-lingual news portal with a focus on Malaysian current affairs.    Subscribe to our channel - http://bit.ly/2Qo08ry   ------------------------------------------------------------------------------------------------------------------------------------------------------ Check us out at https://www.freemalaysiatoday.com Follow FMT on Facebook: https://bit.ly/49JJoo5 Follow FMT on Dailymotion: https://bit.ly/2WGITHM Follow FMT on X: https://bit.ly/48zARSW  Follow FMT on Instagram: https://bit.ly/48Cq76h Follow FMT on TikTok : https://bit.ly/3uKuQFp Follow FMT Berita on TikTok: https://bit.ly/48vpnQG  Follow FMT Telegram - https://bit.ly/42VyzMX Follow FMT LinkedIn - https://bit.ly/42YytEb Follow FMT Lifestyle on Instagram: https://bit.ly/42WrsUj Follow FMT on WhatsApp: https://bit.ly/49GMbxW  ------------------------------------------------------------------------------------------------------------------------------------------------------ Download FMT News App: Google Play – http://bit.ly/2YSuV46 App Store – https://apple.co/2HNH7gZ Huawei AppGallery - https://bit.ly/2D2OpNP  #FMTNews #SapuraEnergy #CashInjection #OilAndGas

Transcript

00:00An analyst said the government's 1.1 billion ringgit cash injection into Sapura Energy

00:07Berhad comes with strict conditions to ensure there's no blank check for the debt-laden

00:13oil and gas services provider.

00:16Imran Yusuf, head of research at MIDF Amana Investment Bank, said the rescue package should

00:23not be construed as a bailout as others have claimed.

00:27He pointed out that there are conditions attached to the capital injection, one of

00:32them being that it can only be used to settle monies owed to its vendors.

00:38Imran said the funds could be seen as a strategic investment in Malaysia's energy security,

00:44rather than an investment in Sapura Energy.

00:48He said the capital injection could ensure that Malaysia's oil and gas supply chain or

00:53ecosystem is unaffected and remains intact.

00:58On Tuesday, Sapura Energy announced that Malaysia development holding Sundram Berhad, a special

01:04purpose vehicle under the Minister of Finance, will subscribe to its 1.1 billion ringgit

01:10redeemable convertible loan stocks, subject to certain conditions.

01:15This means that the government is not giving a grant but a loan to Sapura Energy, which

01:20can be converted into company shares later should its fortunes improve.

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