PT Nikko Securities Indonesia recently approached the state-controlled underwriters of PT Garuda Indonesia Tbk's IPO with an intention to acquire 10.88% stake in the national flight company.
Two reputable sources said Nikko is confident that it obtains a strong back-up by two strategic investors.
Sources, as quoted by Bisnis Indonesia today, Hong Kong-based airlines Cathay Pacific Airways and the US-based Delta Air Lines are considered to be the strategic investors for Garuda.
"Nikko has approached us as the underwriters of Garuda IPO. Now the talk has continued. However, the underwriters ask the higher price than the market level," the sources said.
During the talks, Nikkp has revealed that those strategic investors intend to propose Rp500 for each Garuda share, which is still below the IPO level at Rp750.
However, those strategic investors want to have an option for one director and commissioner in Garuda Indonesia.
The State-Owned Ministry's Deputy Parikesit Suprapto declined to further comment on Garuda. However, he confirmed that there are talks between those underwriters and strategic investors.
"We leave the deal to those underwriters, PT Danareksa Sekuritas, PT Bahana Securities, and PT Mandiri Sekuritas," he said.
President Director Harianto Solichin at Nikko Securities was unreachable for comment.
In September's Garuda financial statement, those underwriters and PT Danareksa (Persero), parent of Danareksa Sekuritas, owned 10.88% stake or 2.46 billion shares in Garuda. Referring to the stake, those spent Rp1.85 trillion to absorb unsold shares from the IPO.
Disclosure: No position at the stock mentioned above.
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