Finance
Indonesian fund, Mitsui vie for $300 million stake in toll operator RKE, sources say
Published by Global Banking and Finance Review
Posted on February 4, 2025
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Published by Global Banking and Finance Review
Posted on February 4, 2025
By Yantoultra Ngui
SINGAPORE (Reuters) - Indonesia's sovereign wealth fund, Indonesia Investment Authority (INA), and Japan's Mitsui & Co are among prospective buyers of CVC Capital Partners' 25% stake in Indonesian toll road operator RKE International, valued at up to $300 million, two sources with knowledge of the matter said.
CVC, a Luxembourg-based investment firm, initiated the sale process for its 25% stake in RKE International, also known as Road King Expressway International Holdings, late last year. The sale attracted interest from various financial investors and strategic companies, one of the sources added.
The potential transaction could value CVC's stake at around $250 million to $300 million, or the whole company at up to $1 billion, both sources said.
The remaining stake in RKE International is held by Hong Kong-listed property development and infrastructure group Road King Infrastructure.
The sources declined to be named as the matter was private.
CVC declined to comment. RKE International and Road King did not respond to emailed requests seeking comment. INA said it was unable to comment on the matter. Mitsui refrained from commenting on individual matters.
The sale comes amid growing global investors' interest in infrastructure assets across Southeast Asia lured by the region's growth prospects and the sector's stable and long-term returns against the backdrop of global uncertainties.
RKE International's current toll road portfolio consists of four Indonesian expressways spanning around 335 kilometers (208.2 miles) in total located in the provinces of Central Java, East Java and North Sumatra, according to Road King's website.
In 2018, CVC invested 2 billion Hong Kong dollar ($256.7 million) into RKE International, which at that time had a portfolio of expressways in China, according to an announcement at that time.
In November 2023, RKE International sold its Chinese expressway assets to Hong Kong-based Cornerstone Holdings Ltd. for 4.4 billion yuan ($606.8 million), according to stock exchange filings.
($1 = 7.7918 Hong Kong dollars)
($1 = 7.2507 Chinese yuan)
(Reporting by Yantoultra Ngui; Editing by Jacqueline Wong)