JAKARTA (TheInsiderStories) – Publicly listed firm, PT Waskita Karya Tbk (IDX: WSKT) planned to divest its statke in the three toll road units to escapes from the mounting debt, the CEO told member of parliament on Wednesday (07/01). The state-run company has a total value of Rp89 trillion (US$6.13 billion) until next year.
“We expect [the divestment] to be carried out this year, so that it can return the equity that has declined,” the CEO, Destiawan Soewardjono told the parliamentarian.
The majority of these debt comes from its investment projects funded with various loans. He said, Waskita was ready to divest its ownership in Becak Kayu Toll Road in Jakarta, the Kanci – Pejagan and Pejagan – Pemalang Toll Road in Central Java, also to reduce its portion in the Cibitung – Tanjung Priok Toll Road to become a minority.
Beside divest its stake, Waskita was also reviewing to request a capital injection from the government to strengthen the company’ equity. As of end of March, the developer’ equity position recorded worth of Rp27.27 trillion.
Beside, he hoped the disbursement of receivables including land bailouts and project payments from the government could be done soon to help its operations, especially the cash flow management. Now, said the CEO, the cash position of Waskita‘ operations is in a negative position.
Last year, the operator announced has officially released a 40 percent ownerships in the Solo – Ngawi Toll Road operated by PT Jasamarga Solo Ngawi (JSN) and Ngawi – Kertosono – Kediri toll road owned by PT Jasamarga Ngawi Kertosono Kediri to Kings Key Limited with worth Rp2.5 trillion. After the divestment, the composition of the two toll roads will be Kings Key owned 40 percent, PT Jasa Marga Tbk (IDX: JSMR) 40 percent and PT Lintas Marga Jawa 20 percent.
Its holding, Road King Infrastructure Ltd., is not a new player in the toll road business. The company has managed 340 kilometers of toll roads in China since 1993. The toll road portfolio is spread across four provinces, Anhui, Shanxi, Hebei and Hunan.
The five sections managed by the Road King are Changsha – Yiyang Expressway (69 kilometers), Ma’anshan – Chaohu Expressway (36 kilometers), Yuci Longbai Village – Chengzhao (72 kilometers), Baoding – Tianjin Expressway (105 kilometers), and Tangshan – Tianjin Expressway (58 kilometers).
While, Waskita injected funds of Rp1.19 trillion to WTR. The capital will be used for operational activities of the unit. WTR will placed the cash to its unit PT Citra Waspphutowa (CW) with total amount Rp61 billion.
CW owned 25 percent stake in Depok – Antasari toll road concession in West Java, joined with state-owned investment holding PT PP Tbk (IDX: PTPP) and publicly listed toll road operator PT Citra Marga Nusaphala Persada Tbk (IDX: CMNP). Both company hold 12.5 percent and 62.5 percent, respectively.
Waskita‘ owned 80.56 percent stake of WTR or equivalent to Rp12.83 trillion, while the other shares hold by PT Dana Tabungan dan Asuransi Pegawai Negeri (8.29 percent or Rp1.32 trillion) and PT Sarana Multi Infrastruktur (11.14 percent or Rp1.77 trillion).
Currently, the developr has 16 toll road business entities that are already operating but not give an advantage to the company. So far, said Soewardjono, the company still inject liquidity to the units through loans or capital, around 70 percent of the contracts.
Based on the financial statements of the first quarter of 2020, Waskita has a total liability of Rp89.09 trillion. This obligation consists of short-term liabilities of Rp40.11 trillion and long-term liabilities of Rp49.89 trillion.
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