Mandiri Sekuritas Bakrieland: to divest 30% of Bakrie Toll road by next year (ELTY, Rp330, Buy, TP: Rp500)

Bakrieland plans to sell 30% stake of Bakrie Toll road for some Rp500tn as well as certain portion of its property projects to raise a combined Rp2tn. In the next three years, the company hopes to raise Rp15tn to fund toll projects encompassing some 300km of road network. About 70% shall tapped using external funds while the remainder from internal cash. Out of the 300km planned toll road network, we have only incorporated the 35km Kanci Pejagan toll road in our projections which will start commercial operations by year end. Currently we have a buy on ELTY trading at a 34% to our NAV09F.