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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