Garuda Will Rights Issue, Chairul Tanjung Bakal Take Rata?

Former Coordinating Minister for Economic Affairs Chairul Tanjung. (Photo: Doc. Antara)

JAKARTA - PT Garuda Indonesia (Persero) Tbk is communicating with PT Trans Airways regarding additional capital by granting Pre-emptive Rights (HMETD) or rights issue on the Indonesia Stock Exchange (IDX).

The goal is to obtain the commitment of the company owned by Chairul Tanjung to the intended corporate action.

For your information, Trans Airways is one of the shareholders of the issuer coded GIAA, apart from the government and the public.

President Director of Garuda Indonesia, Irfan Setiaputra, is reluctant to specify Trans Airways' commitment to the rights issue that will be carried out in the near future, even though communication has been carried out.

Irfan said, Garuda management is not in the capacity to answer this.

"Regarding Trans Airway's commitment, we are not in the capacity to be able to answer which shareholders will exercise their rights during the rights issue. We certainly communicate with all shareholders, both majority and minorities about possible simulations," said Irfan in a virtual press conference, Thursday, October 20.

Furthermore, Irfan said, coordination between shareholders and management was also carried out to maintain other possibilities that occurred in the process of issuing the new shares.

"We of course answer questions, especially from the minority (shareholders) what will happen to the Exchange in the future, so we can't confirm that at this time," he said.

As previously reported, Garuda Indonesia has obtained approval for the rights issue.

The state-owned flight will issue a maximum of 68,072,851,377 shares (PMHMETD). This corporate action was decided at the Extraordinary General Meeting of Shareholders (EGMS).

In addition, Garuda Indonesia will convert debt to creditors after the decision on the homologation of the Suspension of Debt Payment Obligations (PKPU).

This action is also an entry point for state capital participation (PMN) worth IDR 7.5 trillion, where the government will exercise its rights as the majority shareholder or 60.54 percent.

In addition to the government, the company estimates that it will pocket fresh funds of IDR 12.4 trillion from other shareholders, namely PT Trans Airways and the public.

The portion of ownership of each is currently recorded at 28.27 percent and 11.19 percent.

For your information, PT Trans Airways and public shareholders may only participate in the rights issue plan. This is because the issuance of new shares from the action will be allocated to convert the company's debt to creditors into shares.