Batavia Air acquisition cancelled
Nurfika Osman, The Jakarta Post, Jakarta, Indonesia | Business | Sun, October 14 2012, 3:33 PM
A planned acquisition of PT Metro Batavia, the owner of Batavia Air,has been officially cancelled, according to an official at the airline.
“Yes, it has been cancelled because we did not reach an agreement with the buyers,” Batavia commercial director Sukirno Sukarna told The Jakarta Post on Sunday.
“This is not the end of the world for Batavia because we will still continue our business without the acquisition,” Sukirno said, declining to elaborate.
Sukirno said that Malaysian-based low cost carrier AirAsia Berhad and PT Fersindo Nusaperkasa, the owner of a 51 percent stake in Indonesia AirAsia (IAA), would make announcement on Monday.
AirAsia and Fersindo signed a memorandum of understanding (MoU) at the end of July to buy PT Metro Batavia for US$80 million.
Under the agreement, AirAsia Berhad will own a 49 percent stake in Metro Batavia, while its Indonesian partner will hold the remaining 51 percent to meet local ownership rules.(iwa)
