Metro Pacific unit to buy 40% of Jakarta expressway | Inquirer Business
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Tollways group says deal worth P16B

Metro Pacific unit to buy 40% of Jakarta expressway

/ 05:06 AM July 02, 2022
Jakarta expressway

BNI 46 building, one of the iconic landmarks of Indonesia’s capital city, Jakarta

Metro Pacific Investments Corp., the listed utilities and infrastructure giant led by Manuel Pangilinan, is expanding its toll road footprint in Indonesia.

In a stock exchange filing on Friday, Metro Pacific said one of its overseas units is nearing a deal to acquire 40 percent of the concession holder of the 38-kilometer Jakarta-Cikampeke elevated expressway for P16.2 billion.

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Operational since 2019, the Jakarta-Cikampeke toll road is part of the trans-Java network, which serves as a gateway from the capital city of Jakarta to West, Central and East Java.

“The transaction is being carried out pursuant to MPTC’s plan to expand its toll road investment portfolio in Indonesia. The transaction presents a growth opportunity for MPTC’s business in Indonesia,” said Metro Pacific, referring to its toll road subsidiary Metro Pacific Tollways Corp. or MPTC.

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MPTC operates the North Luzon Expressway, Subic-Clark-Tarlac Expressway, Cavite Expressway, Cavite-Laguna Expressway and Cebu-Cordoba Link Expressway as well as expressways in Vietnam and Indonesia.

Overseas investments

Its investments overseas include the 9.7-km Jakarta Lingkar Baratsatu (Jakarta International Airport Toll Road), 7.25-km Bintaro Serpong Damai commuter road, 11.6-km Jalan Toll Seksi Empat (Makassar International Airport toll road) and the 10.25-km Makassar Metro Network, information on MPTC’s website showed.

In Vietnam, the group operates the 49.7-km DT741, 45.4-km PRTC 1 & 2, 22.8-km Rachu Mieu 2 and 1.6-km Co Chien.

The latest Indonesian toll road would be acquired using PT Margautama Nusantara, which is indirectly controlled by MPTC.

Metro Pacific described the deal as a “conditional share purchase agreement.” Under the terms, PT Margautama Nusantara will acquire 40 percent in Jasa Marga Jalanlayang Cikampek, the concession holder of the Jakarta-Cikampek project.

“The closing of the transaction is subject to the satisfaction of customary closing conditions, including the completion of the technical due diligence to the satisfaction of [PT Margautama Nusantara],” the filing showed.

Metro Pacific said P14.91 billion of the purchase price would be paid over several tranches.

An additional P1.32 billion would be paid subject to pre-agreed target level of tariff adjustment. The parties set a long-stop date or deadline to complete the deal by Dec. 31, 2024.

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