PT Astratel Nusantara, the highway construction unit of PT Astra International Tbk, agreed to buy control of a toll-road operator in East Java in a move to boost its business.
The company will spend Rp 750 billion ($88 million) to acquire the toll road, and it will use its own funds to finance the acquisition, Astratel said on Tuesday. The company signed the deal with Natpac Graha Arthamas, the toll road’s existing shareholder, on Aug. 25, according to the statement.
Astratel bought a 95 percent stake in the 40.5-kilometer toll-road linking Kertosono and Mojokerto, in East Java. Both regencies are located in the suburb of Surabaya, the second-largest city in Indonesia, after Jakarta.
The acquisition lifts Astratel’s portfolio in toll roads to three from two that it controls: the 72.5-kilometer toll road linking Merak and Serpong in Banten province and the 12.5-kilometer one linking Serpong and Kunciran. Serpong is located in West Jakarta. The toll road will give Astratel three concessions with total investment estimated to reach Rp 3.4 trillion, the company said in a statement in Jakarta.
Indonesia plans to boost infrastructure development such as seaports and toll roads to spur economic growth to 6.7 percent in 2012 from a projected 6.5 percent this year and 6.1 percent in 2010. Poor infrastructure has been hampering Indonesia’s more than $700 billion economy.
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