After almost a decade of waiting - at last an indicative number and indicative percentage.
-hms- _____ From: B.DORPI P. [mailto:bdo...@indopetroleum.com] Sent: Wednesday, August 26, 2009 9:36 AM To: !B.DORPI P. Subject: Re.: Garuda Indonesia:To Raise $300M-$400M Via Importance: High http://online.wsj.com/article/BT-CO-20090824-707509.html AUGUST 24, 2009, 9:46 A.M. ET Garuda Indonesia:To Raise $300M-$400M Via IPO JAKARTA (Dow Jones)--Indonesian national airline PT Garuda Indonesia aims to raise $300 million to $400 million from an initial public offering that it plans to undertake in the first half of 2010, Chief Executive Emirsyah Satar said Monday. Satar told reporters the proceeds of the deal are to be used to fund Garuda's planned business expansion. He added that Garuda is worth an estimated $1.5 billion in total. Satar's comments were the clearest indication so far of the planned scale of the IPO. The chief executive said earlier this year that around 15% to 20% of Garuda may be sold in the offering, but didn't specify the amount of funds it intends to raise. Garuda, which is one of the world's few profitable airlines after struggling to turn a profit for much of its previous history, now plans to expand its fleet and service more international routes. The flag carrier aims to start flights to Amsterdam next year, and may fly to other European cities and to the U.S. at a later stage. The European Union last month partially lifted a two-year flight ban on Indonesian airlines, allowing Garuda and several smaller Indonesian carriers to fly to its member states, after the Indonesian government worked to improve safety and oversight. The bloc in 2007 banned all Indonesian airlines from entering its airspace following a string of fatal crashes in Indonesia, including a Garuda flight which crashed on a domestic route, killing 21 people, including five Australians on an official trip. Garuda previously operated flights to Amsterdam but ceased flying the route in 2004. No Indonesian airlines currently fly to Europe. The improvements in Garuda's financial performance, and the green light to resume European flights, add to expectations that Garuda may finally be listed next year, after the Indonesian government several times in previous years dropped plans to sell the airline. The previous such plan for an IPO in the first half of this year was canceled after Garuda failed to complete adequate preparation in time. Also Monday, Satar said Garuda hopes by next month to conclude a restructuring of $760 million in debt, including IDR1 trillion ($100 million) owed to state lender PT Bank Mandiri (BMRI.JK). The debt restructuring "will enable Garuda's business expansion to proceed more easily and quickly" and will help Garuda improve its financial performance, Satar said. As well as extending its routes, Garuda also plans over the next five years to increase its fleet to 116 aircraft from 62, including acquisitions of larger Boeing 777s and Airbus 330-200s. -By Linda Silaen and Reuben Carder, Dow Jones Newswires; 62 21 3983 1277; <mailto:reuben.car...@dowjones.com> reuben.car...@dowjones.com [Non-text portions of this message have been removed]
