JAKARTA (TheInsiderStories) – Indonesian contruction firm, PT Waskita Karya Tbk (IDX: WSKT) plans to inject more capital to PT Waskita Toll Road (WTR) by absorbing new shares issued by the subsidiary. The unit will issue 785,987 new shares with a value of Rp1.19 trillion (US$83.22 million).
At present, said the spokeswoman, Shastia Hadiarti in disclosing information on Tuesday (07/14), the company is a shareholder of WTR with an ownership of 80.56 percent. He said its important to absorb the new shares so the company’ ownership is not diluted.
Earlier this year, Waskita Toll Road management planned to divest the four toll roads it manages to expand its business and pay off obligations. The four sections that will be partially released are part of the Trans Java project.
WTR has released 40 percent of its ownership in the Solo – Ngawi toll road operated by PT Jasamarga Solo Ngawi and same portion in the Ngawi – Kertosono – Kediri Toll Road managed by PT Jasamarga Ngawi Kertosono Kediri to Kings Key Limited, an investor from Hong Kong. From the divestment of these two segments, WTR pocketed funds of Rp2.5 trillion.
On May 8, Waskita Toll Road also disbursed a loan of Rp314.62 billion to its subsidiary, PT Waskita Transjawa Toll Road (39.49 percent). This loan is expected to improve the performance of its subsidiary and be able to encourage its contribution to the parent.
Last year, Waskita Karya had injected Rp1.19 trillion into WTR, which would be used for the operational activities of the business unit. The cash was placed by WTR in its unit PT Citra Waspphutowa (CW) with a total amount of Rp61 billion.
CW has a 25 percent stake in Depok – Antasari toll road concession in West Java, joining a state-owned investment that holds PT PP Tbk (IDX: PTPP) and a publicly listed toll road operator PT Citra Marga Nusaphala Persada Tbk (IDX: CMNP) . Both companies hold 12.5 percent and 62.5 percent respectively.
“The initial capital for the construction of the Depok – Antasari toll road reached Rp1 trillion, but then increased to Rp2.12 trillion,” the company explained last year.
Waskita Karya owned 80.56 percent of WTR shares or equivalent to Rp12.83 trillion, while other shares were owned by PT Dana Tabungan and Civil Servant Insurance as much as 8.29 percent or Rp1.32 trillion, and state financial firm, PT Sarana Multi Infrastruktur 11.14 percent or Rp1 77 trillion.
The Toll Road Regulatory Agency has ordered WTR to join with other state-owned toll road operators, PT Hutama Karya and Jasa Marga, to develop toll road projects in North Sumatra. This project is worth IDR13.4 trillion.
The projects include the construction of the Kuala Tanjung – Tebing Tinggi – Parapat toll road, in Medan, North Sumatra, with a total cost of Rp9.6 trillion and is targeted to operate in 2020 with a concession period of 40 years. The 143.5 kilometer (km) toll road project is a continuation of the 61.72 km Medan – Kualanamu – Tebing Tinggi toll road. Previously Medan – Kualanamu – Tebing Tinggi has been completed and is connected to the Belawan – Medan – Tanjung Morawa toll road.
This toll road will consist of six segments, namely one with Tebing Tinggi – Inderapura (20.4 km), two with Inderapura – Kuala Tanjung (15.6 km), three sections with Tebing Tinggi – Serbelawan (30 km). Then, section four Pemelawan – Pematang Siantar (28 km), section five Pematang Siantar – Seribudolok (22.3 km), and section six Seribudolok – Parapat (16.7 km).
The toll road will also have seven intersections at Inderapura, Tebing Tinggi, Serbelawan, Pematang Siantar, Seribudolok, Parapat, and Simpang Susun Raya.
At present, Waskita has 16 toll road business entities that are already operating but which do not benefit the company. So far, said Soewardjono, the company still injects liquidity into units through loans or capital, around 70 percent of the contract.
Based on the financial statements of the first quarter of 2020, the company had a total liability of Rp89.09 trillion. This obligation consists of short-term liabilities of IDR 40.11 trillion and long-term liabilities of IDR 49.89 trillion.
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