State-owned toll road operator PT Jasa Marga ( JSMR ) is planning to sell its remaining shares in toll road operator PT Citra Marga Nusaphala Persada ( CMNP ) to raise funds to finance its business expansion.
JSMR is planning to off-load 81.6 million shares, or about 3.8 percent of CMNP’s outstanding shares.
“We have a policy to off-load our minority shares. We want to focus on roads in which we are the majority owner,” JSMR corporate secretary Okke Marlina said.
Okke cited that her company previously owned 17.7 percent of CMNP. However, JSMR has been divesting the shares over the last few years.
“For current divestment, we are still in the preparatory stage. We still don’t know how much or to whom we will sell the shares,” Okke said.
CMNP shares were unchanged at Rp 2,075 at closing time Tuesday. Meanwhile, JSMR shares closed at Rp 5,100 on Tuesday, increasing from Rp 5,000 a day earlier.
According to Indonesia Stock Exchange ( IDX ) data, CMNP is 70.71 percent owned by the public, 13.32 percent by Morgan Stanley & Co. International Plc.–Heffernan Int’l Offshore Incorporation Ltd., 5.61 percent by JP Morgan Chase Bank NA, 5.23 percent by Remington Gold limited, and 5.13 percent by directors and commissioners.
JSMR has appointed PT Danareksa Sekuritas to manage the divestment.
Besides selling its shares in CMNP, JSMR will also off-load its 24.5 million treasury stocks — stocks that can be created when a company buys back its shares.
Okke said that JSMR would use the funds gained from the off-loading of the divestment and treasury stocks to acquire other toll road projects and finance the company’s current projects.
“The company is planning to acquire several new toll roads, the concessions of which belong to other companies. We want to have more potential toll roads,” Okke said.
She added that her company was progressing in the acquisition of the Cinere–Jagorawi toll road developed by PT Translingkar Kita Jaya, which was established by a consortium of PT Transindo Karya Investama, PT Waskita Karya, PT Jalantol Lingkarluar Jakarta and PT Kopnatel Jaya.
Investment in the Cinere–Jagorawi toll road is estimated at around Rp 647 billion.
“We have reached a deal in acquiring the Cinere–Jagorawi toll road. However, we are still in the process of administrative and internal approval,” Okke said, declining to reveal how much the company spent on the acquisition.
JSMR is developing eight toll roads: Jakarta Outer Ring Road Northside 2 connecting Ulujami–Kebon Jeruk, Bogor Ring Road, Cengkareng–Kunciran, Kunciran–Serpong, Semarang–Surakarta, Gempol–Pandaan, Gempol–Pasuruan and Benoa–Ngurah Rai–Nusa Dua, and relocating the Porong–Gempol toll road.
This year, JSMR is scheduled to start construction of seven toll roads.
“Some of the toll roads developed this year are expected to start operation next year,” Okke said.
The company is in need of Rp 25 trillion to finance the nine projects. The company recently said that it would allocate Rp 7.7 trillion in capital expenditure this year, particularly to support the nine toll road projects.
— JP/Raras Cahyafitri