Khazanah sells its controlling stake in one of Indonesia's largest toll concessions
KUALA LUMPUR: Khazanah Nasional Bhd is selling all its 55 per cent stake in one of the longest toll roads in Indonesia to a Canadian pension fund.
Khazanah sold the stake to Canada Pension Plan Investment Board (CPPIB) and its partner PT Baskhara Utama Sedaya (BUS).
The stake in PT Lintas Marga Sedaya (LMS) is held through PLUS Expressways International Bhd.
The deal marks PLUS Expressways exit from the neighbouring country.
LMS is the concession holder and operator of the 117km long Cikopo-Palimanan toll road in West Java.
CPPIB, in a statement today, said it would take a 45 per cent LMS stake, while BUS' stake in LMS will increase to 55 per cent.
Bloomberg reported on September 13 that PLUS Expressways had received a US$500 million (RM2.1 billion) offer for its stake in LMS.
PLUS Expressways is a subsidiary of the UEM Group and is ultimately wholly-owned by Khazanah.
In 2006, UEM Group reportedly was awarded the highway project, called Cikopo-Palimanan and also known as the Cipali toll road, but construction did not start until 2013 as the company needed to complete land acquisition and get the required regulatory approvals.
The project was finished in 2015 and is the Malaysian group’s first highway concession in Indonesia.
- September 19, 2019 @ 7:44pm