Wijaya Karya Divests Entire Hotel Indonesia Shareholding, Transaction Valued at IDR 7.8 Billion

PT Wijaya Karya Tbk (WIKA) will divest its entire ownership stake in PT Hotel Indonesia Group (HIG). According to WIKA Corporate Secretary Ngatemin (Emin), the company’s stake in HIG is held through its subsidiary, PT Wijaya Karya Realty (WR).

WR is a non-controlling shareholder in HIG with a 49% stake. WIKA holds 95.10% ownership in WR. WR will sell its entire shareholding in HIG to PT Hotel Indonesia Natour (HIN), representing 1,470 shares or 49% of all paid-in and placed shares in HIG. The purchase price agreed between WR and HIN is IDR 7.8 billion.

WIKA characterises the transaction as an integral part of a series of related and continuous transactions undertaken to accelerate Indonesia’s tourism and hotel industry.

The Ministry of State-Owned Enterprises (BUMN) has designated HIN as the implementing entity for the integration and enhancement of state-owned enterprise hotel operations, as stated in the Ministry’s letter numbered S496/MBU/10/2024 dated 11 October 2024 concerning shareholder aspirations regarding the integration and value enhancement of state-owned hotel enterprises.

WR and HIN therefore have a shareholding relationship, and the transaction falls within the category of related-party transactions. The transaction is also intended to improve WR’s financial performance by potentially driving increases in profit, liquidity, and solvency, which would add value for WIKA.