PUTRAJAYA: Malaysia Development Holding Sdn Bhd's (MDH) RM1.1bil investment into Sapura Energy Bhd is not a government bailout but a strategic investment towards sustainability, according to government spokesperson Datuk Fahmi Fadzil.
The MDH is a special purpose vehicle of the Finance Ministry.
This statement follows Sapura Energy's announcement that MDH would subscribe to its redeemable convertible loan shares in a filing with Bursa Malaysia on Tuesday (March 11).
Fahmi, who is also the Communications Minister, stated that the investment would be used to settle debts owed to its 2,000 vendors, 80% of which are bumiputera owned.
He mentioned that the ministry would closely monitor the debt repayment process to ensure that Sapura Energy transitions towards a more sustainable model.
"We will see to it on a case-by-case basis, but we will maintain a Madani approach to this process in which there will be no free ‘lunch’ in terms of money.
"Management within Sapura Energy has changed in accordance with this, with a new chief executive officer and team which we hope will help the company transition to become more sustainable.
"From a strategic point, we want Sapura Energy to continue playing its key role in our oil and gas industry," Fahmi told reporters at a press conference in the Communications Ministry office on Wednesday (March 12).
Sapura Energy reaffirmed that the investment will be used to settle its liabilities and will be part of the company's financial restructuring transition towards long-term stability and operational recovery in a statement on Tuesday (March 11).
