AirAsia Indonesia Backdoor Listing Through Rimau Multi Putra Pratama on IDX

JAKARTA (TheInsiderStories) – Low cost flight carrier PT AirAsia Indonesia will list its share through a back-door listing on the Indonesia Stock Exchange (IDX). The company which is the target of backdoor listing is PT Rimau Multi Putra Pratama Tbk (CMPP), an Indonesian-based engaged in trading coal (formerly known as PT Centris Multipersada Pratama Tbk).

AirAis Indonesia has reiterated it plans to list its shares on the IDX in the fourth quarter of 2017 from plan was earlier shelved in mid-2016.

Based on public announcement at Malaysian Stock Exchange on Tuesday (29/8), its unit Malaysian AirAsia Bhd and its wholly-owned unit, AirAsia Investment Ltd (AAIL) reported has executed to partially dispose and convert its perpetual securities investments in its Indonesian unit in CMPP.

Upon completion of the corporate exercise, CMPP will become the new holding company of AirAsia Indonesia, whereby AAIL and its Indonesian partner, PT Fersindo Nusaperkasa (FNP), will become the major shareholders in CMPP, which now flies 51 percent of AirAsia Indonesia shares, will also own shares in CMPP.

Currently, CMPP is controlled by PT Rimau Multi Investama (RMI) with 76.24 percent share ownership and public  23.76 percent. In the disclosure of information uploaded on the IDX on same day (29/8), CMPP management stated that it will hold an Extraordinary General Meeting of Shareholders on Oct. 6, 2017 to seek shareholder approval.

The new shares to be issued amounted to 13,646,388,139 shares at an exercise price of Rp 250 per share. This means that the CMPP corporate value is worth Rp 3.41 trillion (US$256.39 million). Of these fresh funds, as much as 76 percent will be allocated to take over AirAsia Indonesia shares worth of Rp2.60 trillion.

The rights issue ratio of CMPP is 337 old shares versus 23,818 new shares. Fersindo Nusaperkasa and AAIL will act as standby buyers. After rights issue, CMPP ownership will be changed to RMI 1.55 percent, public 0.48 percent, Fersindo Nusaperkasa 49.96 percent and AIL 48 percent.

It said, CMPP wants to focus its efforts into the field of scheduled commercial aviation services. Therefore, CMPP will divest its business activities in coal sales and shipping services. CMPP believes that the divestment plan is conducted as a form of reorganization with the aim of optimizing the performance and financial condition of CMPP.

Previouslu, AirAsia Group CEO and founder Tony Fernandes said, proceedings from the IPO will be used to fund route expansion and to enlarge the airline’s fleet in Indonesia. There had been reports that Indonesia AirAsia would be merged with sister company Indonesia AirAsia X before listing to solve issues regarding negative equity. It is unclear whether the merger plan is still on the table.

Tony said, AirAsia aim to add two more aircraft by the end of this year from currently operate 22 fleets. He estimating, the airlines we will be able to add six to eight more aircraft by next year. The Jakarta-based airline aims to operate about 40 to 42 Airbus A320 aircraft by the end of 2019.

At the same day, The Ministry of Tourism Republic of Indonesia and AirAsia, has officially unveiled a collaboration to drive tourism efforts in promoting the wonders of Indonesia in Malaysia through the vast connectivity the airline offers across the Indonesian archipelago.

AirAsia Indonesia has added direct flights between Jakarta-Macau this month to lure Chinese tourists to visit Indonesia. The new route will service passengers three times flights per week with low cost carrier Airbus A320s aircrafts that can accommodate 180 passengers. In the next month, the flight is increase to become four times in a week.

“I hope this route will open up for foreign visitors, not only for those from Macau, but also from China mainland,” said President Director AirAsia Indoensia Dendy Kuswara by adding the company has committed to support the government efforts to develop Indonesia tourism by extending its route network and offering services at affordable prices.

Minister of Tourism Arief Yahya commenting, the Indonesia Government encourage AirAsia to create more new routes to attract more foreign tourists to flight to Indonesia. Currently, AirAsia Indonesia bring around 25 percent of total foreign tourists in a year.

The government targeted to bring 15 million foreign tourist to visit Indonesia in 2017. The government set target to bring 2 million Chinese tourists this year and 10 million tourists in 2019.

(Written by Linda Silaen and Elisa Valenta, Email: