"Selling shares to strategic investors means inviting them to strengthen Merpati`s capital by buying part of its shares," Merpati corporate secretary Herry Saptanto said.Jakarta (ANTARA News) - The management of Merpati Nusantara Airlines has hailed the government`s decision to sell part of the ailing state airline company`s shares to strategic investors.
Merpati supported the decision to invite strategic investors to strengthen its capital, Merpati corporate secretary Herry Saptanto said here on Friday.
The decision was the best thing to do both for Merpati and the Indonesian nation, he said.
The State Enterprises Ministry has many times restructured Merpati by injecting funds to it, reducing the number of its employees, relocating its head office, and restructuring its debts to private creditors through debt-to-equity swap. However, the restructuring programs have not run as expected.
"Selling shares to strategic investors means inviting them to strengthen Merpati`s capital by buying part of its shares," he said.
By doing so, Merpati`s capital would increasingly become stronger and the state airline company could improve its performance and increase its fleet, he said.
State Enterprises Minister Dahlan Iskan has given strategic investors until two months to buy Merpati shares.
"We give two months to would-be investors to make bids for the shares," he said after attending a meeting at the Coordinating Ministry for Economic Affairs recently.
Dahlan said the decision to invite strategic investors was aimed at helping salvage Merpati which is burdened by huge debts of up to Rp6 trillion.(*)
Editor: Heru Purwanto
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