Indonesian fund, Mitsui vie for $300 mln stake in toll operator RKE, sources say

Road King Infrastructure

04/02/2025 03:20

By Yantoultra Ngui
       SINGAPORE, Feb 4 (Reuters) - Indonesia's sovereign
wealth fund, Indonesia Investment Authority (INA), and Japan's
Mitsui & Co  8031.T  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  1098.HK .
    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)
 ((Yantoultra.Ngui@thomsonreuters.com;))