Monday, February 10, 2025
HomeInternationalIndonesian Fund, Mitsui compete for $300M stake in toll operator RKE: Sources

Indonesian Fund, Mitsui compete for $300M stake in toll operator RKE: Sources

Indonesia’s sovereign wealth fund, the Indonesia Investment Authority (INA), and Japan’s Mitsui & Co are actively bidding for CVC Capital Partners’ 25% stake in Indonesian toll road operator RKE International, whose valuation is up to $300 million, according to two sources familiar with the matter.

Luxembourg-based investment firm CVC initiated the sale process for its 25% stake in RKE International, also known as Road King Expressway International Holdings, in late 2024. According to one of the sources, the sale has drawn interest from financial investors and strategic companies.

Both sources indicated that the potential deal could value CVC’s stake at approximately $250 million to $300 million, implying a total valuation of up to $1 billion for the entire company.

RKE International owns the remaining shares of Road King Infrastructure, a Hong Kong-listed property development and infrastructure group.

As the matter is private, the sources requested anonymity.

CVC declined to comment, while RKE International and Road King did not respond to emailed inquiries. INA stated it could not comment, and Mitsui refrained from discussing individual transactions.

The sale occurs amid increasing interest from global investors in Southeast Asia’s infrastructure sector, driven by the region’s strong growth potential and stable, long-term returns, especially in the face of global economic uncertainties.

According to Road King’s website, RKE International operates a toll road portfolio comprising four expressways in Indonesia, spanning approximately 335 kilometres (208.2 miles) across Central Java, East Java, and North Sumatra.

In 2018, according to a previous announcement, CVC invested 2 billion Hong Kong dollars ($256.7 million) in RKE International, which managed a portfolio of expressways in China.

In November 2023, RKE International divested its Chinese expressway assets, selling them to Hong Kong-based Cornerstone Holdings Ltd. for 4.4 billion yuan ($606.8 million), as per stock exchange filings.

Subscribe To Newsletter

ICYMI

BRL Editor
BRL Editorhttps://businessreviewlive.com
Business Review Live covers finance, technology, travel, lifestyle, and everything in between through exclusive interviews and analysis, market statistics, digital video, and an expanded array of content formats.