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Saturday, December 9, 2023

Metro Pacific, GIC buying $1.5-b stake in Indonesian firm

Metro Pacific Tollways Corp. (MPTC) teamed up with Singapore sovereign fund GIC to acquire more than a third of an Indonesian state-owned tollways operator—a transaction that could be worth up to $1.5 billion.

MPTC chief finance officer Chris Lizo said in a news briefing the joint venture partners would bid for a 35-percent stake in Jasamarga Transjawa Tol (JTI).

“They are selling 35-percent stake in a company that owns 13 toll roads with estimate value anywhere from $1 billion to $1.5 billion,” Lizo said.

JTI has the largest connected toll road network in Java. It operates 13 toll sections spanning 676 kilometers.

All JTI’s toll roads have been fully operational since 2019 with an average 35 years of remaining life in the concession.

Under the proposed partnership, MPTC’s Indonesian subsidiary will acquire 20.3 percent of the 35 percent to be purchased, while GIC will own 10.3 percent. MPTC-led PT Margautama Nusantara will take the remaining 4.2 percent.

Lizo said due diligence is ongoing until December 2023, while submission of final bids will be in January 2024.

He said depending on the final bid, MPTC’s share could amount to $600 million. GIC recently invested in MPTC’s tollroad unit in Indonesia, acquiring 33 percent.

“So, we will jointly bid for this trans-Java project,” Lizo said.

Meanwhile, Lizo reported that MPTC recently bagged a new concession project in Indonesia, which involves a 21.5-kilometer elevated toll road worth $1.4 billion (P80.8 billion).

The project, similar to Skyway in South Luzon Expressway, is located in one of the highly-congested areas in Indonesia.

The project will commence this month and will be completed by January 2028. It will have concession life of 45 years.

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