Opening Hours

Mon - Fri: 7AM - 7PM

JAKARTA: Flag carrier Garuda Indonesia on Friday secured approval from shareholders to issue a new share issue in December to raise 14.3 trillion rupiah ($929.48 million), the company said.

This rights issue will allow the government to increase Garuda’s capital by Rp7.5 trillion. The plan was approved by Congress in April, and according to the deal prospectus,

The additional government investment is part of Garuda’s commitment to recapitalize its debtors following a court-supervised debt restructuring program for the airline agreed in June.

Garuda plans to offer its shares at a price range of Rp 182-210 per share. In other words, if the other shareholders fully agreed to sell at the highest price, they could raise a total of up to IDR 14.3 trillion, including government recapitalization. price.

Chief Executive Officer Irfan Setiaputra said in a statement, “The company plans to optimize the additional capital mainly for maintenance, aircraft refurbishment, fuel and aircraft leasing. This will strengthen the company’s business prospects.”

Shareholders also approved the conversion of Rp4.2 trillion worth of debt into equity as part of the debt restructuring agreement.

Assuming all stakeholders participate in rights issuance at the highest price, the government’s stake in carriers will shrink from the previous 60.54% to 51.25%.

The stake held by Indonesian billionaire Chairul Tanjung’s second largest shareholder, PT Trans Airways, will be diluted from 28.27% to 21.90%.

Garuda’s performance improved as travel restrictions eased, with the company posting a net profit of $3.76 billion in the first half of the year, the company said.

($1 = 15,385.0000 Rupiah) Carrier Garuda Indonesia Shareholders Approve Rights Issuance Plan

Recommended Articles