Singapore’s Sembcorp Marine (Sembmarine) is urging its shareholders to vote in favour of a proposed S$2.1 billion ($1.53 billion) recapitalisation that will see the government’s investment company Temasek taking a direct stake in the offshore and marine contractor.

Sembmarine said on Thursday that the transaction proceeding was necessary to meet its vital need for liquidity.

“If shareholders do not approve the transaction, our strenuous efforts to recapitalise and strengthen our balance sheet will be negated and the critical need to address our liquidity requirements will fail,” the offshore and marine contractor said.