JAKARTA (TheInsiderStories) – Philippine infrastructure conglomerate Metro Pacific Investments Corporation, through its unit Metro Pacific Tollways Corp (MPTC), is expanding into Indonesia, the home turf of its principal shareholder, Salim Group.
Metro Pacific told the Philippine Stock Exchange on Monday that its tollway arm – Metro per cent Pacific Tollways — had acquired a 42.25 per cent stake in PT Nusantara Infrastructure Tbk (IDX: META) for $132 million, bringing its shareholdings to 47.08 per cent.
Nusantara’s portfolio covers toll roads, ports, water, energy and telecommunications, sectors in which Metro Pacific operates, except for port operations. Metro Pacific affiliate PLDT is the Philippines’ biggest telecom company.
Metro Pacific will focus on developing Nusantara’s tollway business.
“MPTC will support the existing management of Nusantara by sharing our brand of service and helping the Indonesian firm realize its growth potential, especially in the toll road sector,” said Rodrigo Franco, CEO of Metro Pacific Tollways.
Nusantara operates a total 34.47km of toll roads, which connect to an airport, a seaport and business districts. Metro Pacific Tollways, meanwhile, runs 192km of toll roads in the main island of Luzon, and has proposed new projects elsewhere in the country.
“Our tied-up with MPTC blends the expansive management style of Metro of Metro Pacific with PT Nusantara’s geographic reach and expertise in managing Indonesia projects,” Ramdani Basri, CEO of PT Nusantara.
Metro Pacific Chairman Manuel Pangilinan said he is aiming to bring Metro Pacific’s infrastructure expertise to the rest of Southeast Asia. The conglomerate has previously acquired shares in Thai and Vietnamese toll road companies.
Metro Pacific is a Philippine unit of First Pacific, Salim’s Hong Kong-listed investment house.
In September this year, Indonesian conglomerate Rajawali Corpora sold 21 percent of Nusantara Infrastructure or 3.2 billion shares, for Rp864 billion (US$65.45 million) to local investor Matahari Kapital Indonesia (MKI). The purchase of META’s shares was concluded through BCA Sekuritas brokerage, at Rp270 per share.
Established in 2006, Nusantara Infrastructure as an integrated infrastructure company in Indonesia which started its first development project in the toll road sector and has expanded its portfolio into ports, energy, water and telecommunication towers.
US$1 = Rp 13,518
Written by Yosi Winosa, firstname.lastname@example.org