About To Overhaul Management In EGMS, Garuda Indonesia Managing Director: That's Not True

Garuda Indonesia aircraft. (Photo: Angkasa Pura II)

JAKARTA - PT Garuda Indonesia (Persero) Tbk will hold an Extraordinary General Meeting of Shareholders (EGMS) on November 20. One of the agendas is to change the company's management. This news was announced in the Information Disclosure of the Indonesia Stock Exchange (BEI).

President Director of PT Garuda Indonesia (Persero) Tbk Irfan Everyutra spoke about this. He denied there would be a change in the composition of the company's board of directors.

"There is no change of management," he said, when confirmed, Friday, October 30.

For your information, in addition to the change in the company's management, a series of other agendas at the Garuda Indonesia EGMS include increasing the authorized capital, issued capital and paid-up capital of the company.

In fact, there is a discussion regarding the issuance of mandatory convertible bonds (OWK) with a value of IDR 8.5 trillion through the mechanism of additional capital without pre-emptive rights (PMTHMETD) or private placement.

Regarding OWK, Garuda Indonesia's management has said that it will release debt securities with a value of IDR 8.5 trillion. In which, these bonds will be converted seven years later and become share ownership through the mechanism of Capital Increase Without Pre-emptive Rights (PMTHMETD) or private placement.

Meanwhile, the private placement price was executed at around Rp206 per share. The number of shares to be issued is 41.26 billion shares, so that later series B shares will experience a 61 percent decrease in ownership (dilution).

Regarding the change of directors, previously, BUMN Minister Erick Thohir also overhauled Garuda's directors and commissioners at the January 22 2020 EGMS. Erick appointed Irfaniaputra to become the President Director of Garuda replacing the previous President Director Ari Askhara who was caught in the Harley Davidson and Brompton motorcycle scandal cases.

Erick also appointed Triawan Munaf and Yenny Wahid as Garuda's new commissioners. Triawan as President Commissioner and Yenny Wahid as Independent Commissioner.