JAKARTA – The Indonesian government has confirmed that the national airline PT Garuda Indonesia will offer up to 25% of its shares via an initial public offering scheduled for the second quarter of 2010.
The minister for state-owned enterprises, Mustafa Abubakar, told Bisnis Indonesia, “Twenty-five percent of Garuda shares will be released to the market. The funds will be used to pay for the expansion of the company.
“The entire process is now underway, including the appointment of an underwriter.”
The 25% share of the national airline is less than the 49% initially proposed for public ownership.
CEO of Garuda, Emirsyah Satar, told the media that nearly 100% of Garuda’s debtors have accepted and agreed to the financial restructuring of the airline.
The reduction of debt loads and the overall financial restructuring of the airline are intended to make the public offering of shares more attractive.
Source: Bali Update (www.balidiscovery.com)
