Sapura’s case similar to TH Plantations – Najib

Najib Razak has drawn a comparison between the previous Pakatan Harapan government’s attempt to sell off TH Plantations Bhd’s (THP) assets and the issues surrounding Sapura Energy Bhd.

Najib said he strongly opposed the selling of Sapura’s assets when the company was just experiencing working capital issues as doing so will only weaken the GLC.

In a Facebook post, Najib said the losses suffered by Sapura owing to depreciation and “provisions” were only on paper and would resolve themselves once the company’s basic cash flow problems were fixed.

He recalled that in 2017, THP, the plantation arm of Tabung Haji, had made a profit of RM50.7 million but suffered losses of RM658.4 million after the PH government came into power in 2018.

He said the huge loss was due to the depreciation of THP’s assets after it switched to a new valuer company which used a new method of valuation that “did not make sense”.

This resulted in THP announcing that it would sell off more than 76% of its land area, he said.

Eventually, he said, he and Umno managed to stop the sale of THP’s assets, including ending the contracts signed by PH, which were later endorsed by Perikatan Nasional.

For 2020 and 2021, THP recorded profits of RM27 million to RM101.6 million, respectively.

It was reported that Sapura, saddled with RM10.3 billion in loans from nine banks, had begun discussing a debt-restructuring plan and was planning to sell some of its assets “to return to sustainability”.

In addition to the nine lenders, the company owes RM1.5 billion to about 3,000 vendors, The Star reported. FMT

Sapura’s case similar to TH Plantations – Najib

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