JAKARTA (TheInsiderStories) – Indonesian toll builder, PT Waskita Toll Road (WTR) sold 30 percent of share ownership in the company unit, PT Kresna Kusuma Dyandra Marga for Rp550 billion (US$37.41 million). The subsidiary hold the concession of Bekasi – Cawang – Kampung Melayu (Becakayu) toll road in East Jakarta.
The asset released by the unit of PT Waskita Karya Tbk (IDX: WSKT) will be absorbed by investors who have gathered in the limited placement mutual fund collective investment contract. It said, PT Danareksa Investment Management acted as an investment manager for the limited participation mutual funds equity contract of Danareksa Toll Road – 01.
Based on the disclosure of information to the bourse, the parent explained, that the purpose of transferring shares to the fund managers is to support WTR’ operational activities. Through this transaction, the unit is expected to maximize its business performance and provide added value for Waskita as the shareholder.
Recently, the state-owned construction firm has announced to inject more capital to WTR by absorbing new shares issued by the subsidiary. The unit will issue 785,987 new shares with a value of Rp1.19 trillion. At present, the company is a shareholder with an ownership of 80.56 percent.
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.
At present, the issuer 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, Waskita 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.
While, the grandson firm was founded in 1996 to carry out the exploitation of the Becakayu Toll Road project including funding, engineering planning, construction implementation, operation and maintenance of toll roads. In addition, the toll operator is also responsible for investing and supporting services in other toll road sectors based on applicable legal provisions.
Based on data from the Toll Road Regulatory Agency, the Becakayu toll road has a length of 16 kilometers consisting of two sections. All the segments development its expecting fully completed in December 2020.
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