Indonesia: Rimau gets shareholders’ nod to raise $252m to buy AirAsia unit

REUTERS/Olivia Harris

Shareholders of Indonesian transportation firm PT Rimau Multi Putra Pratama Tbk have approved the company’s plans to raise 3.4 trillion rupiah ($251.57 million) through a rights issue to buy PT Indonesia AirAsia.

Rimau will sell 13.64 billion new shares and PT Fersindo Nusantara and AirAsia Investment Ltd – the current owner of Indonesia Airasia – are acting as standby buyers, Donny P. Pratono, commissioner of Rimau, said after a meeting with shareholders on Wednesday.

Rimau will use 76 percent of the proceeds, or 2.6 trillion rupiah, to buy Indonesia AirAsia’s perpetual securities that would eventually be converted into equity, he said. He also said the company would use the 24 percent for capital expenditure.

“We see a good prospect in the airline business,” Pratono told reporters.

It is not clear when Rimau will sell the new shares, but Pratono said Indonesia AirAsia would effectively become Rimau’s unit by the end of November.

Malaysian budget carrier AirAsia Bhd had previously announced a $300 million initial public offering plan for Indonesia AirAsia set for the first half of 2016, but that was shelved.

AirAsia announced the transaction plan with Rimau in August.

Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.