In a move to boost its balance sheet before going public, Indonesia's Sempati Air is to sell 40 per cent of its equity in a private deal to an Indonesian-Malaysian consortium.
Coupled with a planned public offering of another 20 per cent later this year, Sempati will make major strides in reducing the quasi-governmental links that rivals claim have given it an advantage in international route awards.
Sempati is certainly well connected. Prior to the private sale to the Indonesian-Malaysian consortium, Asian Aviation, Indonesian President Suharto's youngest son owned 25 per cent of the airline through his control of the Humpuss Group, a holding company run by the military owned 40 per cent, and tycoon Mohammad Hasan, a Suharto associate, owned the remaining 35 per cent.
After the public offering Asian Aviation will become the largest single shareholder with a 32 per cent, compared to the Humpuss Group's 12 per cent, the military holding company's 20 per cent, and Hasan's 16 per cent. Privately held Asian Aviation is majority owned by Indonesian investors. The company has leased aircraft to Sempati for several years. It has not disclosed the price for its stake, but Sempati says the sale boosts its working capital from US$21 million to $90 million.
Sempati refuses to comment on what it plans to do with the additional $125 million it hopes to raise from its public offering. But it has already expressed interest in widebody aircraft for a proposed London service. The carrier has already selected underwriters for its planned listing on Jakarta's stock exchange - the first public listing by an Indonesian airline.
David Knibb
Source: Airline Business
