Garuda Indonesia Prepares Conversion Of Bonds To Shares: Persentase Of Government Ownership And Trans Airways Owned By Konglomerat Chairul Tanjung Bakal Tergerus

JAKARTA - PT Garuda Indonesia (Persero) Tbk will increase capital by pre-emptive rights (HMETD) or rights issue, private placement (PMTHMETD) and convert bonds into shares. These three corporate actions will be included in the agenda of the Extraordinary General Meeting of Shareholders (EGMS) on August 12, 2022.

In the company's disclosure of information, the issuer with the stock code GIAA plans to increase capital by providing Preemptive Rights to the Company's shareholders in a maximum of 225,585,894,911 shares or 871.44 percent of the company's issued and paid-up capital at the time of information disclosure.

Then, GIAA will carry out a private placement scheme. Garuda management explained that one of the restructuring schemes that had been approved in the peace plan was to convert the company to creditors who were entitled to receive equity through PMTHMETD.

After the private placement is complete, Garuda Indonesia will then issue a convertible of bonds into shares. Management explained that OWK had been issued in 2020 of IDR 1 trillion of the total value approved at IDR 8.5 trillion with a maximum tenor of 7 years.

"After conducting Preemptive Rights and OWK, the structure of share ownership of Garuda Indonesia will change," the management wrote, quoted on Thursday, June 7.

Share ownership after Preemptive Rights

In the draft issuance of the Garuda Indonesia Preemptive Rights, the government's ownership in series B was originally 15,670,777,620 shares or a percentage of 60.54 percent, will increase to 165,670,777 shares or 65.88 percent.

Likewise, shares of PT Trans Airways owned by conglomerate Chairul Tanjung, which as of June 30 were recorded at 28.27 percent or 7,316,798,262 shares, will increase to 30.76 percent or 77,352,872,147 shares.

Meanwhile, public shares were recorded before the transaction of 11.19 percent or the equivalent of 2.899,000.371 shares. However, after the HMETD transaction, public share ownership was eroded to 3.36 percent or 8,448,821,397 shares.

Share ownership after OWK conversion

After the Preemptive Rights transaction and the OWK conversion, the government's series B shares in Garuda Indonesia actually increased to 185,670,777,620 shares. However, the percentage will decrease to 52.23 percent.

Meanwhile, shares belonging to PT Trans Airways remain 77,352,872,147 but the percentage also decreased to 21.76 percent.

On the other hand, public shares were recorded at 8,448,821,397 shares or 2.38 percent. This public stock decreased from the previous 3.36 percent.

In this OWK conversion scheme, there are creditors who are entitled to receive equity. The amount is 23.64 percent or 84,028,360,000 shares.

This structure with a note on the procurement of shares after the implementation of the Preemptive Rights assumes that the participation of public shareholders is only 20 percent of the total rights available to be issued into ordinary shares.

This percentage represents the number of public shareholders' holdings with greater ownership of 0.25 percent of the paid-up capital before the Pre-emptive Rights.