Jasa Marga plans to increase ownership to 55% in Aloha-Perak toll road (JSMR, Rp1980, Buy, TP: Rp2400)

JSMR will increase its ownership in PT Margaraya Jalan Tol (MJT) to become 55% from 2.5% of current ownership, the process still in due diligence. MJT is a concession agreement holder of Waru (Aloha) – Wonokoromo-Tanjung Perak toll road, also known as Aloha-Perak toll road (18.6Km), in Surabaya, East Java; which include on stalled toll road projects. Investment needed for this toll may reach Rp6.5tn, which Rp1.3tn will be used for land clearance. The high cost also caused due to construction for the road is elevated. Besides JSMR, PT Duta Graha Indah Tbk (DGIK) also expressed interest to increase its ownership on MJT, as the company has 1.0% of shares. (Investor Daily)