SINGAPORE/JAKARTA — A consortium led by Metro Pacific Tollways Corp, the biggest toll road group in the Philippines, is in advanced talks to buy a minority stake in a unit of its Indonesian peer Jasa Marga JSMR.JK, in a deal that could fetch $750 million, two sources with knowledge of the matter said.
Metro Pacific Tollways, in which Hong Kong’s investment firm First Pacific 0142.HK has a 48.1% interest, is aiming to buy a 35% stake in Jasamarga Transjawa Tol, a unit of state-owned Jasa Marga that manages the operation of the Trans Java Toll Road, the sources said.
A deal could be struck in the second quarter of this year, the sources added, declining to be named as the matter is private.
Metro Pacific Tollways declined to comment.
Lisye Octaviana, Jasa Marga’s corporate communications head, said Jasamarga Transjawa’s equity financing activities are currently still ongoing.
“We targeted it will be completed in the first half of 2024,” Lisye said, adding that the identities of the potential investors cannot be disclosed due to confidentiality agreements.
“What we can emphasize is, we are looking for a credible partner who is able to understand, appreciate and find long-term investment value through the assets of PT Jasamarga Transjawa Tol,” Lisye added.
Metro Pacific Tollways is the biggest private sector toll company in Southeast Asia with investments in Indonesia via Nusantara Infrastructure META.JK and in Vietnam’s CII Bridges & Roads Investment LGC.HM, its website shows.
In the Philippines, its toll road portfolio includes the North Luzon Expressway and the Subic-Clark-Tarlac Expressway, among others, according to its website.
The company is part of Philippines-listed conglomerate Metro Pacific Investments Corp MPCFF.PK, which in turn is majority owned by First Pacific’s Metro Pacific Holdings, LSEG data showed.
Jasa Marga, 70% owned by the Indonesian government, is the first and largest toll road developer and operator in Indonesia, according to its website.
Set up in 2017, Jasamarga Transjawa operates the 676-kilometer Trans Java Toll Road, in which Jasa Marga owns 56%, its website shows.
— Reporting by Yantoultra Ngui in Singapore and Stefanno Sulaiman in Jakarta; Editing by Kane Wu and Mrigank Dhaniwala