JAKARTA: Shareholders of Indonesian transportation firm PT Rimau Multi Putra Pratama Tbk have approved the company’s plans to raise 3.4 trillion rupiah (US$251.57 million) through a rights issue to buy PT Indonesia AirAsia.

Rimau will sell 13.64 billion 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 2.6 trillion 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 told reporters.

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.

Malaysian budget carrier AirAsia Bhd had previously announced a $300 million initial public offering plan for Indonesia AirAsia set for the first half of 2016, but that was shelved.

AirAsia announced the transaction plan with Rimau in August.