INDONESIA’S sovereign wealth fund, Indonesia Investment Authority (INA), and Japan’s Mitsui are among prospective buyers of CVC Capital Partners’ 25 per cent stake in Indonesian toll road operator RKE International, valued at up to US$300 million, two sources with knowledge of the matter said.
CVC, a Luxembourg-based investment firm, initiated the sale process for its 25 per cent 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 US$250 million to US$300 million, or the whole company at up to US$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 e-mailed requests seeking comment. INA said it was unable to comment on the matter. Mitsui refrained from commenting on individual matters.
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The sale comes amid growing global investors’ interest in infrastructure assets across South-east 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 kilometres in total located in the provinces of Central Java, East Java and North Sumatra, according to Road King’s website.
In 2018, CVC invested two billion Hong Kong dollar (S$349 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 for 4.4 billion yuan (S$832 million), according to stock exchange filings. REUTER
