Deutsche (DB)
Wskt Buy TP 2950 from 3300
Toll divestment is off the table
No deal for WSKT toll road divestment
In today’s public disclosure, WSKT stated that there is no deal in any of its toll road divestment plans.
Recall that in the initial plan of Apr-17, WSKT was slated to divest 10 toll sections before it got bids for only 6 sections by closing the deadline on 31-Aug.
In our view, with no stream of new equity, WSKT will need to consider 3 options to keep its toll road projects on track, i.e.
1) selling sections at cheaper valuations,
2) merging toll assets with JSMR in the Trans- Java holding, and/or
3) a Waskita Toll Road IPO, which we believe could happen next year at the earliest.
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