Astratel, Citigroup buy toll road stake

Tue, 02 Aug 2005 | Source: DOW JONES

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

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