Update COVID-19 in Indonesia: 28,233 confirmed infections, 1,698 deaths (3 June 2020)
03 June 2020 (closed)
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Garuda Maintenance Facility AeroAsia (GMF AeroAsia), the aircraft maintenance and repair unit of Indonesia's national flag carrier Garuda Indonesia, allotted USD $100 million to its capital expenditure budget in 2018. This includes the funds that are required for the company's expansion plans to the Middle East. GMF AeroAsia raised IDR 1.13 trillion (approx. USD $84 million) through an initial public offering (IPO) on the Indonesia Stock Exchange in 2017.
Iwan Joeniarto, President Director of GMF AeroAsia, said the company is still focused on business expansion - together with its strategic partners - into Batam, Australia, South Korea and the Middle East.
For example, the construction of a new airplane maintenance facility on the island of Batam. This project, estimated to be completed in 2019, requires USD $50 million in investment. Recently, GMF AeroAsia also said it had reached an agreement with the Australia-based KORR Group to act as a strategic partner in Australia. Names of other strategic partners have not been revealed yet.
The USD $100 million that is allotted to capital expenditures in 2018 is financed through bank loans and factoring. Joeniarto added that GMF AeroAsia will soon conduct a private placement in which it will sell another 10 percent stake (including a stake owned by parent company Garuda Indonesia). The stake will be sold to a strategic partner and therefore the company is currently doing negotiations with several possible partners. GMF AeroAsia aims to obtain USD $200 million through the private placement.
Stock Quote Garuda Maintenance Facility AeroAsia - GMFI: