PT Astra Tol Nusantara (Astra Infra) and Canada Pension Plan Investment Board acquired 55 percent shares of Malaysia' Khazanah Nasional Berhard in PT Lintas Marga Sedaya (LMS) - Photo by LMS

JAKARTA (TheInsiderStories) – Indonesia’ toll operator PT Astra Tol Nusantara (Astra Infra) and Canada Pension Plan Investment Board acquired 55 percent shares of Malaysia’ Khazanah Nasional Berhard in PT Lintas Marga Sedaya (LMS).

Its reported the two companies bought the shares with costs US$500 million. The transaction is expected to be completed in the fourth quarter of 2019.

LSM is the concession holder and operator Cikopo – Palimanan (Cipali) toll road in West Java. The concession period of 116.8 kilometers toll road until 2041 and has been fully operational since 2015.

Its Canada Pension Plan first infrastructure investment in Indonesia, said the fund managers yesterday (09/19). The investment will be made in partnership with PT Baskhara Utama Sedaya (BUS), a wholly-owned subsidiary of Astra Infra.

The investment company and BUS will jointly acquire the 55 percent stake held by PLUS Expressways International Berhad, a subsidiary of the UEM Group, ultimately wholly-owned by Khazanah. BUS is an existing owner 45 percent of LMS shares and will lift to 55 percent. While, Canada Pension will acquire hold the remaining stakes in LMS.

“We are pleased to invest in the Cipali toll road alongside Astra Infra and look forward to a successful long-term relationship between our two organizations,” said Scott Lawrence, Managing Director, Head of Infrastructure, Canada Pension Plan

The Cipali toll road is one of the longest operational toll roads in Indonesia and a critical link in the transportation network of the island of Java. The concession is part of the Trans Java Toll Road network.

It serves as a thoroughfare within West Java, which is Java’s most populous and fastest growing province, and it also connects West Java and suburbs of Jakarta with the rest of Java.

“As our first infrastructure investment in Indonesia, this deepens the Fund’ commitment to the Asia-Pacific region as well as our focus on investments in new markets with attractive return and risk characteristics,” added by Uyi Kim, senior managing director and head of Asia Pacific at the company.

Khazanah, through its subsidiary UEM Group Bhd, controls 55 percent of the shares LMS, the concession holder of the Cipali toll road, a The 116.8 kilometers (km) toll road with concession period until 2041 and has been fully operational since 2015. The remaining 45 percent of LMS shares owned by Astra Infra,

Astra Infra, unit of PT Astra International Tbk (IDX: ASII), currently controls 353 km of toll roads divided into six sections at Trans Java network. Astra Infra owns two holding companies, PT Astra Tol Nusantara as the holding company for toll road businesses and PT Astra Nusa Perdana as the holding company for non-toll road businesses.

Beside, LMS, the current portfolio investment of Astra Infra including PT Marga Mandalasakti (ASTRA Infra Toll Road Tangerang – Merak) with length 72.5 km with a concession period up to 2059. All sections of this toll road have been fully operational since 1996.

PT Marga Harjaya Infrastruktur (ASTRA Infra Toll Road Jombang-Mojokerto) owns 100 percent, which is a concession holder of Jombang – Mojokerto toll road in East Java for a period up to 2055. The 40.5km toll road section is divided into four sections.

Astra Infra also invested in additional share ownership in PT Trans Marga Jateng (40 percent) joined with PT Jasa Marga Tbk (IDX: JSMR, hold 58.9 percent) and PT Sarana Pembangunan Jawa Tengah (1.1 percent). The unit having a 45 year concession period until 2055 with lenght 72.6km and is divided into five sections.

The other unit, PT Marga Trans Nusantara hold the concession of Kunciran – Serpong toll road until 2052, owned by Astra Infra (40 percent) and Jasa Marga (60 percent). The 11.2 km toll road segment divided into 2 sections is a part of the Jakarta Outer Ring Road phase 2 network.

Beside toll road, Astra Infra also entered the port sector through PT Pelabuhan Penajam Banua Taka (ASTRA Infra Port Eastkal). Eastkal is a port located in Penajam District, East Kalimantan, which provides port services for public interest to support upstream oil and gas activities in Makassar Strait areas.

While Canada Pension Plan, has a diversified, global portfolio of infrastructure assets and makes direct investments through many of its nine offices worldwide. At June 30, 2019, the investment company had C$33.1 billion ($24.89 billion) invested in infrastructure assets globally and had CPP Fund totaled $400.6 billion.

US$1: C1.33

by Linda Silaen, Email: linda.silaen@theinsiderstories.com