MPTC to finalize acquisition of stake in Indonesian toll operator by September

MANILA, Philippines — Metro Pacific Tollways Corp. (MPTC) is expected to complete its acquisition of a 24.5-percent equity interest in a tollway operator in Indonesia by next month.

Hong Kong-based investment holding company First Pacific Co. Ltd., led by business titan Manuel V. Pangilinan, said the closing of MPTC’s purchase of equity interest in PT Jasamarga Transjawa Tol (JTT) is targeted to take place next month.

Upon closing the transaction, First Pacific said MPTC would own a 24.5-percent equity interest in JTT or an approximately 22.9 percent effective equity interest in the company for a consideration of about $633.8 million.

In late June, MPTC, through its wholly owned indirect subsidiary PT Metro Pacific Tollways Indonesia Services and a 60.4 percent-owned subsidiary PT Margautama Nusantara, partnered with Warrington Investment Pte. Ltd. to enter into agreements with PT Jasa Marga Tbk and Koperasi Konsumen Karyawan Jalin Margasejahtera to acquire a total of approximately 35 percent equity interest in JTT.

It also includes a subscription of new shares issued by JTT.

The total consideration is estimated at $960.3 million with a maximum additional earn-out payment of $15.2 million.

At a special general meeting last Aug. 22, First Pacific said approximately 98.3 percent of its shareholders voted to approve MPTC’s participation to invest in JTT.

First Pacific said that closing the transaction is still subject to the approval of PT Jasa Marga Tbk’s shareholders and the satisfaction of Indonesian regulatory requirements.

Established in 2017, JTT is principally engaged in managing, security and operating the Trans-Java Toll Road Segments in Java, Indonesia.

The toll road segments have been in operation since 1983, with a total length of approximately 676 kilometers.

JTT holds concessions for 13 toll road assets with concession periods ranging from 35 to 50 years to expire between 2044 and 2066.

The toll roads are strategically located across Java, connecting the country’s economic center, major cities, industrial hubs and tourist areas on an island home to a population of approximately 159 million, representing 57 percent of Indonesia’s total population and economy.

MPTC, meanwhile, operates the North Luzon Expressway, Manila-Cavite Toll Expressway, Subic Clark Tarlac Expressway, Cebu-Cordova Link Expressway and the Cavite-Laguna Expressway in the Philippines.

It is also the majority shareholder in PT Nusantara Infrastructure Tbk in Indonesia and CII Bridges and Roads Investment Joint Stock Company in Vietnam.