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Investor Daily - Wijaya Karya obral aset Rp7 T
17 April 2024
By Muawwan Daelami
Jakarta, ID – PT Wijaya Karya Tbk (WIKA) is selling nine of its assets from toll road to non-toll road assets that have an estimated total value of more than Rp7 trillion.
Wijaya Karya Corporate Secretary Mahendra revealed that all of WIKA’s toll road and non-toll road assets would be divested to recover the company’s financial condition.
“The assets that will be divested include seven toll roads, Jatiluhur SPAM (Drinking Water Supply System), and the Jakarta-Bandung high-speed railway. So, there are nine assets that we plan to divest,” Mahendra revealed recently.
There are six toll roads where WIKA is a minority shareholder and one toll road where WIKA is the majority shareholder. From the six toll roads, WIKA owns 25% of Soreang-Pasir Koja (Soroja), 20% of Manado-Bitung (Mabit), 16.56% of Balikpapan-Samarinda (Balsam), and 25% each of Semarang-Demak, Cisumdawu, and Probolinggo-Banyuwangi toll roads.
Meanwhile, regarding the toll road where WIKA is the majority shareholder, WIKA owns 91.21% of Serang-Panimbang (Serpan) toll road. Referring to the financial report for fiscal year 2023, the company’s investment in WIKA Serpan as its subsidiary that manages Serang-Panimbang toll road reaches Rp1.65 trillion.
Hence, the total value of the seven toll road assets that will be divested by the company is estimated to surpass Rp1 trillion. WIKA is also selling off two non-toll road assets, namely Jatiluhur SPAM and the Jakarta-Bandung high-speed railway.
WIKA, represented by PT Wika Tirta Jaya Jatiluhur (WTTJ), operates the Jatiluhur SPAM project catering to Jakarta, Karawang, and Bekasi. WIKA holds an 80% stake in this venture. The estimated divestment value for this clean water project is around Rp1 trillion.
In the Jakarta-Bandung high-speed railway project, the issuer with the ticker code WIKA holds a portion of 39.12% with a total investment of Rp5 trillion as stated in its financial report for fiscal year 2023. This means that if the whole ownership of the company in the Jakarta-Bandung high-speed railway project is sold, it is not impossible for the construction state-owned enterprise (SOE) to obtain Rp5 trillion in funding.
Additionally, proceeds from the sale of the seven toll road assets exceed Rp1 trillion, while the Jatiluhur SPAM project is valued at Rp1 trillion. Consequently, the total divestment value of the company's assets is expected to surpass Rp7 trillion.
WIKA is planning to offer all of its toll road and non-toll road assets to a majority shareholder. Then, it will make offers to other interested investors.
Offers from various investors have already started to come in even though they have not fulfilled the criteria. WIKA is giving priority to investors who either make a single payment or pay in full within two years with a split of 70:30.
Mahendra is reluctant to mention the exact divestment value that WIKA will potentially obtain. “For example, the divestment can be structured in bundles rather than as stand-alone transactions. Packages can be combined with one another. We cannot predict how much each one will go for,” he added.
Three-year recovery
He said that, in the next three years, WIKA will reduce its investment or make new expansions safely to focus on the company’s core business to recover the company’s fundamentals.
“Currently, WIKA’s cash flow is better compared to 2021. However, it is not enough to go all out. In the next two years, we expect to log positive performance,” Mahendra said.
On a separate occasion, MNC Sekuritas Analyst Herditya Wicaksana sees that, technically, WIKA's shares warrant a speculative buy recommendation. "Support lies at Rp183 with resistance at Rp312 per share," the man familiarly called Didit said to Investor Daily on Wednesday (16/4/2024).
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