Khazanah sells its stake in Indonesian toll road

Khazanah Nasional Bhd is selling its 55 per cent stake in one of the longest toll roads in Indonesia to Canada Pension Plan Investment Board (CPPIB) and its partner PT Baskhara Utama Sedaya (BUS).

It has 55 per cent stake in PT Lintas Marga Sedaya (LMS), held via PLUS Expressways International Bhd. PLUS Expressways is a subsidiary of the UEM Group and is ultimately wholly-owned by Khazanah.

LMS is the concession holder and operator of the 117km long Cikopo-Palimanan toll road in West Java. The road project was awarded to UEM Group in 2006 but construction started only in 2013 as it involved land acquisition. The project was completed in 2015.

The completion of this exercise will mark PLUS Expressways' exit from the neighbouring country.

In a statement, CPPIB said it would take a 45 per cent stake in LMS, while BUS' stake in LMS will increase to 55 per cent.