Astratel, Citigroup buy toll road stake

Astratel, Citigroup buy toll road stake

JAKARTA: PT Astratel Nusantara and its partner Citigroup
Financial Products Inc. bought a 54 percent stake in toll road
operator PT Marga Mandalasakti in a deal valued at Rp 255.3
billion (US$26 million), Astratel said on Monday.

After the acquisition, Astratel will own a 34 percent stake of
Marga Mandala, while Citigroup will hold 20 percent.

Astratel, an infrastructure unit of Indonesia's largest
automotive company PT Astra International, and Citigroup will
also assume Mandalasakti's debt of Rp 27 billion.

The toll road company operates the 70-kilometer toll road
connecting Jakarta with Merak in Banten Province.

Officials from Mandalasakti were not available for comment.

Astra has said that it is seeking to diversify into the mining
and infrastructure sectors in an effort to increase its value and
performance.

"Infrastructure in Indonesia is an important sector that is
needed to develop the nation's economy in the future," said
Astra's Chief Executive Michael Ruslim. -- Dow Jones