Government may delay Garuda IPO to early 2011

Indonesian Government stated it still plans to launch Garuda Indonesia's USD400 million IPO by year-end but may be forced to delay the offer to early 2011 (Reuters, 19-May-2010). Garuda had planned to launch the offer in 3Q2010. The Government is confident the recent correction in the global and domestic markets will not hamper the privatisation plans. It also stated Garuda plans to finalise the restructure of USD241.2 million in debt with the European Credit Agency (ECA) by the end of the month.

Indonesian Government: "Our target is to complete the Garuda IPO by November or early December, but if the worst comes to worst, we have to delay it to early next year," Mahmuddin Yasin, State Enterprises Deupty Minister. Source: Reuters, 19-May-2010.