PT AirAsia Indonesia completes acquisition of Indonesia AirAsia

AirAsia announced (29-Dec-2017) that PT AirAsia Indonesia Tbk (AAID) completed the acquisition of shares in PT Indonesia AirAsia (IAA). Details include:

• Disinvestment: As part of the transaction, AAID, which is listed on the Indonesia Stock Exchange (IDX), acquired a 57.25% shareholding in IAA after recently completed a rights issue of shares and also the divestment of its coal trading and transportation businesses;
• Financing: The net cash proceeds of IDR26 billion (USD1.9 million) from the rights issue and the divestment shall be utilised for working capital purposes of AAID;
• Ownership: AirAsia Investment Ltd (AAIL), a wholly-owned subsidiary of the company, continues to hold a 20.95% direct shareholding in IAA and pursuant to the transfer of IAA Perpetual Securities amounting to IDR1.27 billion (USD94.0 million) to AAID, it has acquired a 47.71% shareholding in the listed AAID;
• Value: Based on the last traded price of IDR240 on 29-Dec-2017, the value of AAIL's quoted investments in AAID is IDR1223.5 billion (USD90.4 million);
• Objective: The objective of the corporate exercise is to "provide IAA access to the equity capital markets, increase its visibility and profile, and also to benefit from the higher corporate governance standards that demand greater transparency and accountability being an integral part of an IDX listed entity";
• Advisers: PT RHB Sekuritas Indonesia is the Principal Adviser and Principal Arranger for the transaction whereas Hiswara Bunjamin & Tandjung in association with Herbert Smith Freehills acted as legal counsels for the transaction. [more - original PR]