Indonesia, Japan firms bid for CVC’s 25% stake in RKE International

February 04, 2025 (MLN): Indonesia's sovereign wealth fund, Indonesia Investment Authority (INA), and Japan's Mitsui & Co are among the prospective buyers of CVC Capital Partners' 25% stake in Indonesian toll road operator RKE International.

The stake is valued at up to $300 million, according to two sources with knowledge of the matter.

CVC, a Luxembourg-based investment firm, initiated the sale process for its 25% stake in RKE International, also known as Road King Expressway International Holdings, late last year.

The sale attracted interest from various financial investors and strategic companies, one of the sources added.

The potential transaction could value CVC's stake at around $250mn to $300mn, or the whole company at up to $1 billion, both sources said.

The remaining stake in RKE International is held by Hong Kong-listed property development and infrastructure group Road King Infrastructure.

The sources declined to be named as the matter was private, as Reuters reported.

CVC declined to comment.

RKE International and Road King did not respond to emailed requests seeking comment.

INA said it was unable to comment on the matter.

Mitsui refrained from commenting on individual matters.

The sale comes amid growing interest from global investors in infrastructure assets across Southeast Asia.

The region's strong growth prospects and the sector's stable, long-term returns make it an attractive option against the backdrop of global uncertainties.

RKE International's current toll road portfolio consists of four Indonesian expressways spanning around 335 kilometers (208.2 miles) in total.

These expressways are located in the provinces of Central Java, East Java, and North Sumatra, according to Road King's website.

In 2018, CVC invested 2 billion Hong Kong dollars ($256.7mn) into RKE International, which at that time had a portfolio of expressways in China, according to an announcement.

In November 2023, RKE International sold its Chinese expressway assets to Hong Kong-based Cornerstone Holdings Ltd. for 4.4bn yuan ($606.8mn), according to stock exchange filings.

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