Saturday, September 19, 2009

Garuda Indonesia IPO approved by House of Representative

Garuda Indonesia

House of Representatives finally approved Garuda Indonesia plans to conduct an initial public offering (IPO). After the previous Commission XI and Commission VI has been agreed, the House unanimously approved the privatization plan of Garuda Indonesia on September 16, 2009.

Garuda Indonesia President Director Emirsyah Satar said, with the full approval of the House of Representative, now living Garuda tp process the IPO. "Like the previous plan, the IPO is targeted in the first half 2010," said Emirsyah in Jakarta, Thursday (17 / 9) night. He explained, in this IPO, Garuda Indonesia target the funds between 300 million to 400 million U.S. dollars with sales up 40 percent of shares. The funds will be used as a corporate restructuring fund.

In addition, Garuda Indonesia also plans to use the IPO to convert the debt from Bank Mandiri. As is known, the debt from Bank Mandiri, Garuda Indonesia of 100 million U.S. dollars. Later these debts can be paid to the conversion of the debt stock is worth. For this conversion, Emirsyah explained, requires permission from Bank Indonesia. However, he believes the license will be yobtained. "For this conversion requires a fatwa from Bank Indonesia. Insha Allah, although there has been no fatwa yet, but we believe 99 percent of this conversion will be approved by the BI," he said. He explained, currently his side preparing who will be his underwriters. Most likely its underwriters also from state-owned companies, such as Bahana Securities or any other state.