JAKARTA (TheInsiderStories) – The contractor company, PT Waskita Karya Tbk (IDX: WSKT) announced to divest nine toll roads in 2021 an eyes fresh funds up to Rp11 trillion (US$780.14 million), the management said. The assets belongs to the subsidiary, PT Waskita Toll Road (WTR), and already have potential buyers.
Now, the asset sale process is in due diligence and valuation stages. Director of the issuer, Fery Hendriyanto, said that the company preparedi seven packages to sell the share ownership of WTR in the nine toll roads. Tthe divestment process has all started in this year and is expected to be completed by early of next year.
“We planned to release four segments by the end of this year. However, due to the COVID-19 pandemic, the transaction is still in process. We are still optimistic that the targets will be completed in early 2021,” he asserted.
Of the nine toll roads, three are located in the Greater Jakarta areas, one in West Java Province, two in Sumatra Island, 2 part of the Trans Java toll road, and one in East Java Province. The entire toll road has a length of more than 480 kilometers. He adds, the toll road segment is also included in the investment plan of the Sovereign Wealth Fund or the Investment Management Institution.
Waskita is one of the largest infrastructure investors in Indonesia with ownership of 17 toll roads with a total length up to 909 kilometers, worth more than Rp60 trillion. On Nov. 18, the constructor has released 30 percent of its shares in the Bekasi – Cawang – Kampung Melayu toll road through the signing of a sale and purchase agreement for the issuance of a limited participation mutual fund instrument with values of Rp550 billion.
The underlying assets of the instrument was 30 percent of PT Kresna Kusuma Dyandra Marga and managed by PT Danareksa Investment Management. It said, the offering process has started since May 2020, and in August 2020, WTR has signed the deal to transfer some of its shares in the subsidiary to the buyers. Kresna Kusuma holds the concession section for the Bekasi – Cawang – Kampung Melayu (Becakayu) section in Jakarta.
Hendriyanto revealed, Waskita Karya owned 99.7 percent of the unit’ shares. In addition, president director of WTR, Herwidiakto, said that the funds will be used for the construction and development of the Becakayu section and other company’ toll roads.
in July, the parent has announced to inject more capital to WTR by absorbing the new shares issued by the unit. The subsidiary to releases 785,987 new shares with a value of Rp1.19 trillion. At present, the company is a shareholder of WTR with an ownership of 80.56 percent.
Waskita Toll Road 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, the unit also disbursed a loan of Rp314.62 billion to its subsidiary, PT Waskita Transjawa Toll Road (39.49 percent). 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.
Beside, Waskita Karya, other shares owned by PT Dana Tabungan and Civil Servant Insurance of 8.29 percent and state financial firm, PT Sarana Multi Infrastruktur, holds 11.14 percent. 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 Rp13.4 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.
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