MPTC mulls $600 million investment in Indonesia toll road operator

MANILA, Philippines — Metro Pacific Tollways Corp., the toll road arm of tycoon Manuel V. Pangilinan-led Metro Pacific Investments Corp., may need to allocate $600 million if it successfully secures its bid to invest in Indonesian toll road operator PT Jasa Marga Tbk’s Transjawa Tol, according to a senior executive.

In a virtual briefing, Christopher Lizo, chief finance officer of Metro Pacific Tollways Corp., said the company has aligned with a consortium led by Singapore’s GIC to bid for a 35-per cent stake in Jasamarga Transjawa Tol, which oversees toll road networks across Central Java, West Java, and East Java, covering a distance of 676 kilometers.

 Preliminary reports indicated that the stake sale could potentially generate at least $1 billion.

“If we win the bid, the potential cash requirement from MPTC is $600 million,” said Lizo.

PT Jasa Marga, a state-owned entity, stands as Indonesia’s foremost and largest toll road operator, managing 35 toll road concessions spanning a total of 1,809 kilometers. Its subsidiary Jasamarga Transjawa Tol operates 676 kilometers or 56 percent of the Trans Java Toll Road.

Lizo noted that the consortium, led by GIC, will undertake a comprehensive due diligence for Jasamarga Transjawa in preparation for the submission of a final bid early next year.

In 2022, MPTC successfully concluded the acquisition of Jasa Marga Jalanlayang Cikampek, the concession holder of the Jakarta-Cikampek elevated toll road.

MPTC’s domestic portfolio encompasses significant projects such as the North Luzon Expressway (NLEx), NLEx Connector, Cavite-Laguna Expressway, Subic-Clark Tarlac Expressway, and Cebu-Cordova Link Expressway.

To facilitate further expansion and stimulate growth, MPTC plans to leverage the equities market to raise fresh capital. Lizo revealed that the company is in the process of selecting a local financial advisor for its planned initial public offering.

“We’re in the process of shortlisting the banks as we prepare for the company’s public listing,” he said.

 He added that MPTC has received numerous offers from foreign investors.