Indonesia's transport group Rimau to raise money to buy AirAsia unit

Shareholders of Indonesian transportation firm PT Rimau Multi Putra Pratama Tbk have approved the company’s plans to raise 3.4t rupiah (US$251.57m) through a rights issue to buy PT Indonesia AirAsia. Rimau will sell 13.64b new shares and PT Fersindo Nusantara and AirAsia Investment Ltd - the current owner of Indonesia Airasia - are acting as standby buyers, Donny P. Pratono, commissioner of Rimau, said after a meeting with shareholders on Wednesday. Rimau will use 76% of the proceeds, or 2.6t rupiah, to buy Indonesia AirAsia’s perpetual securities that would eventually be converted into equity, he said. He also said the company would use the 24% for capital expenditure. “We see a good prospect in the airline business,” Pratono said. It is not clear when Rimau will sell the new shares, but Pratono said Indonesia AirAsia would effectively become Rimau’s unit by the end of November.<br/>