Pangilinan-led Metro Pacific Tollways Corp. (MPTC) and its Singapore-based partner, GIC, officially closed their $1-billion investment in Indonesian state-owned Jasamarga Transjawa Tol (JTT) last week.
MPTC, through its subsidiaries PT Margautama Nusantara (MUN) and PT Metro Pacific Tollways Indonesia Services (MPTIS), along with GIC formally signed the investment agreement in June.
The investment covers a 35 percent stake in JTT, a subsidiary of the Indonesian state-owned toll road company, PT Jasa Marga (Persero) Tbk (Jasa Marga).
The investment will enable Jasa Marga to raise capital, maintain healthy leverage, and continue expanding Indonesia’s toll road networks, boosting infrastructure and connectivity for future economic growth.
Significant expansion
“This milestone marks our significant expansion in the Indonesian toll road market,” MPTC CEO and president Rogelio L. Singson said on Tuesday.
“Our collaboration with GIC and Jasa Marga underscores our commitment to expanding our portfolio by collaborating with the leading global investment firms and infrastructure providers,” he added,
With JTT toll roads now under its portfolio, MPTC’s local and international network boasts a 1,300-kilometer network.
JTT is a subsidiary of the leading Indonesian state-owned toll road operator, PT Jasa Marga (Persero) Tbk (Jasa Marga).
Network of 13 toll roads
It is a network of 13 toll roads in the provinces of West Java, Central Java, and East Java. The combined 676-kilometer-long road allows the flow of 850,000 vehicles daily across Indonesia’s Java Island.
Last year, GIC purchased a 33 percent stake in MUN for $209.9 million or about P12.30 billion at current rates. Hence, MPTC’s stake in MUN has decreased to 60.3 percent, while it still holds the majority share.
MPTC also partnered with GIC in bidding for JTT.
HSBC served as the joint financial advisor to MPTC and the sole financial advisor to GIC for this transaction, while BCA Sekuritas acted as the joint financial advisor to MPTC.
