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Jakarta Post

Trans Airways buys 10.9% stake in Garuda

  • Raras Cahyafitri

    The Jakarta Post

Jakarta   /   Sat, April 28 2012   /  08:58 am

PT Trans Airways, owned by one of Indonesia’s richest businessmen, Chairul Tanjung, completed on Friday Rp 1.53 trillion (US$166.8 million) in transactions to purchase a 10.9 percent stake in national flag carrier PT Garuda Indonesia (GIAA).

Chairul, who also chairs the government-appointed think tank, the National Economic Committee (KEN), purchased the shares from underwriters of Garuda’s initial public offering (IPO), which absorbed all unsold shares during the initial shares offer in February 2011.

Trans Airways, a unit of Chairul’s CT Corp group, bought 2.46 million shares at Rp 620 each, meaning the underwriters lost 17.3 percent from the price they bought shares during the IPO.

“Garuda’s fundamental value is actually at [Rp 620]” and therefore it is a fair price, said Eko Yuliantoro, president director of PT Bahana Securities, one of the underwrite...