PT Waskita Toll Road (WTR) plans to divest four toll roads in 2020 - Photo by the Company

JAKARTA (TheInsiderStories)PT Waskita Toll Road (WTR) plans to divest four toll roads in 2020, the management told media on Dec. 18. Three of four them has been eyed by seven to ten foreign and domestic investors, said the unit of state-owned construction firm PT Waskita Karya Tbk (IDX: WSKT).

For 2020, the CEO Herwidiakto said, the company ready to offer three toll roads namely Kanci – Pejagan, Pejagan – Pemalang, and Pemalang – Probolinggo. The other one is being considered to sell are Medan – Kualanamu or Pemalang – Batang toll road. He hope the transaction will be completed in April 2020.

He asserted, the Trans Java toll roads are still attractive to the investors, because of the well infrastructure, rapid car traffic and less marketing to the public.

At the same day, 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 (US$178.57 million).

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 Karya 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 Karya‘ 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).

US$1: Rp14,000

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