"That means it is not yet certain if the ministry will approve the acquisition," Air Transportation Director General Herry Bhakti said.Jakarta (ANTARA News) - The transportation ministry said it has not officially been informed of the acquisition of Batavia Air by AirAsia.
"That means it is not yet certain if the ministry will approve the acquisition," Air Transportation Director General Herry Bhakti said here on Friday.
The ministry has yet to see if the process of acquisition has been in line with the regulation such as on the share split, Herry said.
The Indonesian regulation rules against foreign investors holding the majority share in an airline operating in the country.
AirAsia Berhad and PT Fersindo Nusaperkasa, which are partners in PT Indonesia AirAsia were reported to have acquired Batavia Air at a price of US$80 million.
"After months of negotiations finally we come to an agreement to develop relationship between AirAsia and Batavia Air," AirAsia Berhad chief executive officer Tony Fernandes, told reporters here on Thursday.
Fernandes expressed satisfaction with the deal citing Batavia Air has strong market in Indonesia.
Through the "perfect marriage" AirAsia is set to grab a larger share of the market in Indonesia, he said.
Fersindo president director Dharmadi said his company will have the majority 51 percent share in Batavia with AirAsia Berhad to take the remaining 49 percent.
Fersindo also has a 51 percent stake in PT Indonesia AirAsia with the Malaysian partner a 49 percent shareholder.
Dharmadi, who is also the president director of PT Indonesia AirAsia, said acquisition of the entire shares of Batavia Air will be made in two phases.
In the first phase the two partners will acquire 76.95% of Batavia Air to be followed with the second phase for the remaining 23.05 percent share in the second quarter of 2013, he said.(*)
Editor: Heru Purwanto
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