Metro Pacific Tollways Corp. (MPTC) subsidiaries PT Margautama Nusantara (MUN) and PT Metro Pacific Tollways Indonesia Services (MPTIS) in partnership with the sovereign wealth fund GIC are acquiring a 35 percent stake worth USD 1 billion in Jasamarga Transjawa Tol (JTT), a subsidiary of the Indonesian toll road operator PT Jasa Marga (Persero) Tbk (Jasa Marga).
“This deal fortifies MPTC’s goal to expand in Southeast Asia and enhance our infrastructure portfolio,” Rogelio L. Singson, MPTC president and chief executive, said.
“This expansion in Indonesia aligns well with our commitment to improve our regional presence in toll road operations,” he added.
JTT is a network of 13 toll roads in West Java, Central Java, and East Java. The 676-kilometer long road is considered Indonesia’s crown jewel that allows the efficient flow of 850,000 vehicles daily across Indonesia’s economic powerhouse of Java Island.
With a long and strong track record as a leading regional toll road operator, the addition of JTT toll roads will further boost MPTC’s portfolio to 1,130 kilometers connecting various economic zones in the Philippines and Indonesia.
The investment will allow Jasa Marga to raise capital, maintain a healthy leverage, and continue expanding toll road networks across Indonesia.
By bringing in MPTC, a leading international toll road operator, and GIC, a highly experienced global infrastructure investor, as new and value-adding partners, Jasa Marga maintains full control over JTT’s strategic infrastructure assets and solidifies the quality of its services.
The signing was attended by officials of MPTC, MUN, and MPTIS on 28 June this year.
Last year, the GIC purchased a 33 percent stake in PT Margautama Nusantara (MUN) for USD209.9 million. Hence, MPTC’s stake in MUN has decreased to 60.3 percent although it continues to hold the majority. MPTC also partnered with GIC in bidding for JTT.
HSBC served as joint financial advisor to MPTC and sole financial advisor to GIC for this transaction while BCA Sekuritas acted as joint financial advisor to MPTC.
