Khazanah to sell entire stake in Indonesian toll highway

Khazanah Nasional Bhd holds a 55% stake in the Cikopo-Palimanan (Cipali) toll road, one of the longest in Indonesia.

KUALA LUMPUR: Khazanah Nasional Bhd is selling its entire stake in the Cikopo-Palimanan (Cipali) toll road, one of the longest toll roads in Indonesia, to the Canada Pension Plan Investment Board (CPPIB).

CPPIB and its partner, PT Baskhara Utama Sedaya (BUS), will jointly acquire the 55% stake in PT Lintas Marga Sedaya (LMS), currently held by PLUS Expressways International Bhd, a subsidiary of the UEM Group, which is wholly owned by Khazanah.

LMS is the concession holder and operator of the Cipali toll road.

In a statement today, CPPIB said the transaction is expected to be completed in the fourth quarter of this year, subject to customary closing conditions, including regulatory approvals.

Spanning 117km, the Cipali toll road is one of the longest operational toll roads in Indonesia and a critical link in the transportation network on the island of Java.

It is part of the the Trans Java Toll Road network.