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Indonesia's Garuda estimates $200 million from GMF AeroAsia stake sale: CEO
October 10, 2017 / 2:57 AM / 13 days ago

Indonesia's Garuda estimates $200 million from GMF AeroAsia stake sale: CEO

JAKARTA (Reuters) - Flag carrier PT Garuda Indonesia Tbk estimated its unit PT Garuda Maintenance Facility AeroAsia (GMF AeroAsia) could raise $200 million from selling a 20 percent stake to a strategic buyer, Garuda Indonesia CEO Pahala Mansury said.

CEO of PT Garuda Indonesia Pahala N Mansury gestures during an interview in Jakarta, Indonesia, May 10, 2017. REUTERS/Beawiharta

A conditional sale and purchase agreement could be signed in early December, Mansury told reporters on Tuesday. There are four potential buyers, he said, declining to elaborate.

GMF AeroAsia has a longstanding partnership with Air France Industries KLM Engineering & Maintenance. The latter said in a statement last month that it signed a letter of intent with GMF AeroAsia to “move up” their partnership. It did not detail any plan to buy a stake.

Air France Industries KLM Engineering & Maintenance could not be reached for comment outside of regular business hours.

The chief executive of GMF AeroAsia, Iwan Djuniarto, told reporters on Tuesday the company will use the pricing of its initial public offering (IPO) last month as a benchmark when pricing the stake it intends to sell.

“The pricing can not be smaller than what we have sold to the public,” Djuniarto said.

GMF AeroAsia sold 10 percent of the company in an IPO at 400 rupiah per share, raising 1.12 trillion rupiah ($83.01 million), he said.

The size of the potential sale to a strategic partner rose above an initially planned 10 percent after the firm cut its IPO size. GMF AeroAsia had previously aimed to raise as much as 5.55 trillion rupiah through the IPO.

GMF AeroAsia shares debuted on the Indonesia Stock Exchange on Tuesday and were trading at 384 rupiah a piece at 0315 GMT.

The company plans to use proceeds from the strategic stake sale to help finance expansion and for debt repayment.

Reporting by Cindy Silviana; Additional reporting and writing by Fransiska Nangoy; Editing by Christopher Cushing

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