Indonesia’s Waskita Toll Road (WTR) is said to be restarting the auction process for its highway subsidiary, PT Waskita Transjawa Toll Road (WTTR), later this year, three sources familiar with the development told DealStreetAsia.
The shareholders are currently discussing the process internally and the exact timeline for the auction is yet to be fixed. WTR is being advised by Danareksa Sekuritas and CGS-CIMB Securities for the auction exercise.
When contacted by us, a WTR spokesperson said the company cannot provide further comments as the process was still ongoing.
During its previous attempt at the asset sale, WTR was approached by two potential buyers including global investment firm Macquarie Infrastructure and Real Assets and local company Bandha Investasi.
It is unclear whether the two firms will again join the bidding process from the initial stage as they still appear to be keen on acquiring WTTR’s stake, said one of the sources mentioned above. However, the fresh auction is expected to be a two-round process before the winning bid is selected.
Waskita’s attempt to restart the process comes close on the heels of the overwhelming response from overseas investment firms in the recent Indonesia’s toll road deal in Lintas Marga Sedaya (LMS), which was acquired by the Canadian pension fund-CPPIB, in a deal said to be worth $500 million.
Global players such as Canadian pension fund CDPQ, which participated in the LMS bid, may show interest in similar-profile assets such as the WTTR project, said one of the sources. Aside from CDPQ, infrastructure investor I Squared Capital may also be in the race for the WTTR asset, the source added.
When contacted, CDPQ declined to comment on market rumors. We have reached out to I Squared Capital for its comments.
WTTR reportedly owns and operates three toll road concessions – Kanci-Pejagan and Pejagan-Pemalang in Central Java Province and Pasuruan-Probolinggo in East Java Province. The total length of these three concessions is 123.8 km.
In April 2018, WTR issued Rp5 trillion equity-based limited participation mutual funds (RDPT), which accounts for 70% holding in WTTR. And, WTR has 30% direct ownership in WTTR which will be sold in one package with the RDPT to the future buyer, according to a media report in May 2019. The valuation of WTTR is said to be estimated at around $600 million.