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JSMR

: Sarana Multi Infrastructure (SMI) is reported to study on the possibility of increasing its stake in Pandaan - Malang toll road (from current stake at 5%). This opens an exit opportunity for Pembangunan Perumahan (

PTPP

IJ; Rp1,840; Buy) which previously indicated its interest to divest its stake on the related toll road (up to 15%; current stake at 35%) making them minority shareholder (below 20%) in Pandaan - Malang toll road. (Bisnis Indonesia).
 Comment: This news delivers positive sentiment for both

JSMR

and

PTPP

. First, SMI interest on Pandaan - Malang share acquisition could provide an exit strategy for

PTPP

which could release c. Rp1tn worth of cash (applying

JSMR

's Gempol - Pandaan market valuation at P/B of 2.3x) and book c.Rp566bn potential one-off gain. Second,

JSMR

will have a strong capital back-up from SMI (if realized) in the form of the possibility of accessing additional debt or stake divestment to finance the other toll road projects. We maintain BUY on both

JSMR

and

PTPP

.  

Sumber : IPS RESEARCH