Jasa Marga sells JTT's shares for US$300 million
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Investor Daily - Jasa Marga jual saham JTT US$300 juta
15 February 2023
Jakarta - PT Jasa Marga Tbk (JSMR) is said to sell some shares of PT Jasamarga Transjawa Tol (JTT) through a private placement. The transaction value is predicted to reach US$300 million.
Based on Bloomberg’s report on Tuesday (14/2/2023), the company has appointed BNI Sekuritas to support the placement of JTT shares, the operator of Trans-Java toll road.
Previously, Samuel Sekuritas Analyst Andreas Kristo said that Jasa Marga was planning to carry out an equity fundraising through cooperation with strategic investors or an initial public offering (IPO) of their subsidiary, JTT, in the first half of 2023.
Andreas predicts that JTT will release around 10%-30% of the shares with a PBV valuation of around 2.3-3.5 times or around Rp4.18-19.07 trillion. Funding from the IPO will not be used to repay debts, but to finance toll road construction.
Referring to the financial report of Jasa Marga until the third quarter of 2022, the company’s total liability reached Rp74.2 trillion, while their equity reached Rp26.2 trillion.
Jasa Marga is currently appointed to complete national strategic projects (PSNs) or connectivity support projects on several toll road projects, namely Yogyakarta-Bawen, Yogyakarta-Solo, Gedebage-Tasikmalaya-Cilacap (Getaci), Probolinggo-Banyuwangi (Probowangi), and Patimban Access Road. The investment cost required to construct the toll roads is predicted to reach Rp125 trillion.
“We predict that the second phase of the heavy capex cycle will occur at the end of 2023 with initial financing coming from toll road divestments and JTT share divestment. It must be remembered that the first phase of the heavy capex [cycle] occurred from 2017 to 2022 where the company completed 598 km of new toll roads with an average cash capex per year of Rp16 trillion,” Andreas stated in a research recently.
