UEM Group: Part of proceeds from Cipali toll sale for infrastructure, other Indonesian investments

KUALA LUMPUR (Sept 20): UEM Group Bhd, a wholly-owned subsidiary of Khazanah Nasional Bhd, said part of the proceeds from the disposal of its subsidiary's stake in the operator of the 117km-long Cikopo-Palimanan (Cipali) toll road will be invested into Malaysia's key national infrastructure and other opportunities in Indonesia.

In a statement today, the infrastructure group said its presence in Indonesia will be maintained through its subsidiary UEM Edgenta Bhd, which had set up a regional office in Jakarta in July.

UEM Edgenta is "actively pursuing opportunities in project management, road maintenance, healthcare and asset facilities management services sector", it said.

Yesterday, it was announced that Khazanah's indirect subsidiary PLUS Expressways International Bhd had divested its entire 55% stake in PT Lintas Marga Sedaya (LMS), the concession holder and operator of the Cipali toll road, to the Canada Pension Plan Investment Board (CPPIB) and PT Astra Tol Nusantara (Astra Infra).

CPPIB did not disclose the acquisition price, but Bloomberg reported last Friday that Khazanah received an offer of about US$500 million (RM2.1 billion) for its stake in the 117km toll road.

Click here for more property stories.