Khazanah Nasional, Malaysia’s sovereign wealth fund, has received an offer of about $500 million for its stake in an Indonesian toll-road operator, reported Bloomberg.
Indonesia’s Astra Infra teamed up with the Canada Pension Plan Investment Board in bidding for Lintas Marga Sedaya, the concession holder of a 117 km toll road connecting Jakarta to Cirebon in the western part of the Java island.
Khazanah controls 55 per cent of Lintas Marga through its unit UEM Group, while Astra Infra owns the remaining 45 per cent of the toll-road operator. The Indonesian company has first right of refusal on UEM’s holding in Lintas Marga. Astra Infra is wholly owned by car company Astra International.
In 2006, UEM Group 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.