Garuda Indonesia unit GMF AeroAsia in advanced talks on stake sale

Jakarta

GMF AeroAsia, the state-owned maintenance arm of Garuda Indonesia, is in advanced talks with at least two strategic investors, after a disappointing initial public offering last month aimed at raising capital to help take on rivals such as SIA Engineering for a slice of the US$13.3 billion aircraft servicing market.

Jakarta-based GMF, is close to sealing an agreement to sell 20 per cent of the company to investors including Turkish Technic and Air France Industries KLM Engineering & Maintenance, said two people familiar with the talks. Both asked not to be identified because the talks are ongoing.