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 per cent stake in PT Lintas Marga Sedaya (LMS), currently held by PLUS Expressways International Bhd — a subsidiary of the UEM Group, which is ultimately wholly-owned by Khazanah Nasional Bhd, according to the Canadian pension fund.
LMS is the concession holder and operator of the Cipali toll road.
In its statement, CPPIB said the transaction is expected to be completed in the fourth quarter of 2019, 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, and is part of the Trans Java Toll Road network.