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T Margautama Nusantara, a subsidiary of publicly listed PT Nusantara Infrastructure, has come to an agreement with a new investor, Capital Advisors Partners Asia Pte. Ltd., a Singapore-based company often referred to as Cap Asia.

In their talks, Cap Asia agreed to subscribe to new shares issued by Margautama Nusantara.

'€œWe issued new shares in a rights issue, of which all of the new shares will be subscribed by Cap Asia,'€ Margautama Nusantara chief executive officer Danni Hasan said.

The new shares account for 20 percent of Margautama Nusantara'€™s enlarged capital.

Nusantara Infrastructure now has an 80 percent stake in Margautama Nusantara while Cap Asia has the remaining 20 percent.

Nusantara Infrastructure has informed the Indonesia Stock Exchange (IDX) about Margautama Nusantara'€™s rights issue with Robust Success Sdn. Bhd. as subscriber of the new shares.

According to Cap Asia country director Dannif Danusaputro, Robust Success is Cap Asia'€™s special purpose vehicle.

Both parties declined to reveal the exact amount Cap Asia put into Margautama Nusantara. However, Dannif said that the deal was worth more than US$50 million.

According to Nusantara Infrastructure'€™s financial report for the first quarter of the year, Margautama Nusantara signed on Dec. 18 last year a subscription agreement with Robust Success on the latter'€™s plan to subscribe new shares with a price of up to Rp 545.95 billion (US$56 million).

Danni said that the company would use funds raised from the deal to seek more projects.

'€œWe will reserve the funds for big projects. Margautama Nusantara currently has four subsidiaries. We will likely see the fifth subsidiary soon,'€ Danni said.

Among the subsidiaries are PT Bintaro Serpong Damai '€” which is the operator of the Bintaro-Serpong toll road- and PT Bosowa Marga Nusantara '€” which controls a toll road in Makassar, South Sulawesi.

Margautama Nusantara also has a stake in PT Jakarta Lingkar Baratsatu, which holds the concession of the Kebon Jeruk-Penjaringan toll road.

Apart from the cooperation with Margautama Nusantara, Cap Asia is planning to invest in more infrastructure projects in the country.

'€œWe are looking into two more companies that are also running infrastructure projects ... in telecommunications, clean water and power plants,'€ Cap Asia chief executive officer Johan Bastin said.

He added that Cap Asia expected to get involved in telecommunication and clean water development projects soon. The company, he said, would likely pour up to $100 million for the three projects.

Cap Asia is jointly owned by Rohatyn Group, an asset management firm focusing on emerging markets, and Malaysia'€™s banking company, CIMB Group.

According to Bastin, Cap Asia currently holds $500 million in capital commitments, $200 million of which is ready to be invested.

Dannif said that Cap Asia expected to hold $800 million in capital commitments by year'€™s end.

Nusantara Infrastructure earned Rp 68.78 billion in revenue during the January to March period of the year, increasing by around 5 percent from Rp 65.34 billion in the same period last year.

Despite the small revenue increase, the company'€™s net profits jumped to Rp 94.45 billion in the first quarter of the year from Rp 4.88 billion in the same period of the year.

The company enjoyed earnings from the sales of subsidiaries and the internal restructuring it recently conducted.

Shares in Nusantara Infrastructure (META) closed at Rp 240 on Monday, declining 2.04 percent from last Friday.