OCBC Sekuritas closes largest M&A deal advised by an Asian bank in Indonesia

OCBC Bank said on Wednesday that its wholly owned subsidiary in Indonesia, OCBC Sekuritas, had completed the sale of a stake in Indonesia's longest toll road for 2.57 trillion rupiah (S$272.4 million) last month.

The transaction is said to be the largest merger and acquisition (M&A) deal on which an Asian bank has advised in Indonesia, and ranks among the 10 largest M&A deals in the country since the start of 2016.

OCBC Sekuritas was the exclusive financial adviser to a consortium of four sellers, led by Indonesian private equity fund Saratoga Capital. The combined 22.3 per cent stake in the Cikopo-Palimanan Toll Road was sold to Astratel Nusantara, a subsidiary of Indonesian conglomerate Astra International.

OCBC said that at 2.57 trillion rupiah, the transaction valued the stake in the toll road at over three times book value - almost double the average valuation achieved by other transactions in the infrastructure sector in Indonesia in recent years.

The 116.5km Cikopo-Palimanan Toll Road, known as the Cipali Toll Road, is a crucial link in the Trans-Java Toll Road network, which connects Jakarta to the major industrial and agricultural regions in Java, Indonesia's most heavily-populated island.