GO
Loading...

Garuda Indonesia to hold rights issue in first half 2014

JAKARTA, Feb 4 (Reuters) - Indonesian flag carrier Garuda Indonesia plans a rights issue in the first half of this year, reducing the government's stake in the airline by more than 9 percent, the company's vice president told Reuters on Tuesday.

"Currently Indonesian government owns 69.14 percent stake. After the rights issue, government ownership will be reduced to around 60 percent," said Pujobroto, Garuda's VP Corporate Communications.

In October, the firm delayed its plan to raise $200 million via a rights issue due to unfavourable market conditions. .

Garuda will issue new shares and has appointed Bahana Securities, Mandiri Sekuritas and Danareksa as joint underwriters.

The airline operator said in October that it planned to add up to 250 aircraft by 2025 to effectively double its fleet and meet demand in one of the world's fastest-growing aviation markets.

Garuda's shares closed down 0.62 percent at 482 rupiah on Tuesday. The broader Jakarta stock exchange index was down 0.78 percent.