Toll Road - Photo by PT Nusantara Infrastructure Tbk

JAKARTA (TheInsiderStories) – Philippine’s builder Metro Pacific Tollways Corporation (MPTC) will take over PT Nusantara Infrastructure Tbk (IDX: META) shares from Indonesia’s conglomerate company Rajawali Corpora.

In the announcement on Philippine Stock Exchange on July 3, MPTC through its local subsidiary, PT Metro Pacific Tollways Indonesia (MPTI) announced has acquired an additional equity interest of 760 million shares or 4.99 percent of the total issued shares of META.

The company bought the shares at Rp 211 each with total amount Rp160.36 billion (US$2.30 million). Together with MPTI’s earlier share acquisitions, the unit now holds a total of 53.26 percent of the total issued capital shares of META on a fully-diluted basis by way of a cross sale on the Indonesian Stock Exchange.

As a result of the acquisition, MPTI is required to conduct a mandatory tender offer in favor of the minority shareholders of META, who collectively hold approximately 44.21 percent and 2.53 percent as treasury shares.

The tender offer price, which is still subject to approval by the Indonesian Financial Services Authority, is expected to be set at Rp211 (PhP0.79) per share, or up to a total amount of Rp1.42 trillion (PhP5.29 billion) for all of the remaining shares in META.

MTPI said, the funding for the additional acquisition and the tender offer shall be sourced from bank loans.

Its holding Metro Pacific Investments Corp., (MPIC) is expanding into Indonesia since last year, the home turf of its principal shareholder, Salim Group. Metro Pacific is a Philippine unit of First Pacific, Salim’s Hong Kong-listed investment house.

In Nov. 6, 2017, Metro Pacific had acquired a 47.08 percent stake in META for around $150 million.

Nusantara Infrastructure’s portfolio covers toll roads, ports, water, energy and telecommunications sectors in which Metro Pacific operates, except for port operations. Metro Pacific will focus on developing Nusantara’s tollway business.

Currently, META operates a total 34.47 kilometers of toll roads, which connect to an airport, a seaport and business districts. MTPC, meanwhile, runs 192km of toll roads in the main island of Luzon, and has proposed new projects elsewhere in the country.

Metro Pacific Chairman Manuel Pangilinan has 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.

Before acquired by MPIC, in September 2017, Rajawali sold 21 percent of Nusantara Infrastructure or 3.2 billion shares, for Rp864 billion to local investor Matahari Kapital Indonesia (MKI). The purchase of META’s shares was concluded through BCA Sekuritas brokerage, at Rp270 per share.

On Nov. 3, MPIC indirectly acquired 6.6 billion shares or equivalent to 43.3 per cent of Nusantara Infrastructure shares from MKI.

MTPC and META has commited to allocate around $400 million to invest in Indonesia’s toll road infrastructure projects in 2018-2019, taking part in the government’s drive to develop various infrastructure projects in the country.

Muhammad Ramdani Basri, META’s chief executive stated that this plan is part of Nusantara Infrastructure commitment as the private sector to actively contribute in accelerating the infrastructure development in Indonesia, without relying on State Budget.

Since it established, Nusantara Infrastructure has collaborated with various strategic partners in expanding the business such as Cap Asia, Providence Equity, as well as Nexco and Jexway which are among the leading tollway operators in Japan.

The company has once again gained the trust from international strategic partner by demonstrating the performance and the company’s positive outlook to further strengthen its business way into the future, especially in developing infrastructure in Indonesia.

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: Rp14,325