Three investors are interested in 10 percent stake in Garuda Maintenance Facility (GMF) Aero Asia offered by Garuda Indonesia Tbk (GIAA) in private placement. One of the potential investors, Air France Industries KLM Engineering & Maintenance (AFI KLM) has signed a letter of intent (LOI) with the company.
Pahala N Mansury, President Director of GIAA, said the LOI is not discussed specifically about how much shares will be purchased by AFI KLM. “All that we allocate in this divestment is 10 percent old shares of GIAA in GMF,” said Pahala.
AFI KLM and two other potential strategic investors have conducted due diligence on GMF. “All three have done due diligence but that does not close the possibility for other investors,” said Pahala.
The divestment will be implemented after GMF IPO in October 2017. The company is still awaiting approval from the Financial Services Authority (FSA).
GIAA is targeting higher share price than the IPO price in the range of IDR 390 to IDR 510 per share. The proceeds will be used to improve the company’s performance and support the capital of other subsidiaries.
On Friday (22/9), GIAA rose 0.61 percent to IDR 332. (*)