Metro Pacific Tollways Corporation (MPTC) has signed an agreement to sell a 10.32% stake in its Indonesian unit, which operates toll road concessions, to a group of Japanese investors for $35m.

The company signed the agreement through its wholly owned subsidiary CIIF Infrastructure Holdings to sell its unit Margautama Nusantara (MUN).

The Japanese investors involved in the agreement are West Nippon Expressway (NEXCO-West), Japan Expressway International (JEXWAY) and Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development (JOIN).

Through its subsidiaries and affiliated companies, MUN operates four toll road concessions in Jakarta and Makassar in Sulawesi Island.

MPTC believes that having JEXWAY, NEXCO-West and JOIN as strategic partners will contribute to the growth of MUN.

The company said in a statement: “Their knowledge and capability in toll roads will be instrumental in identifying operational efficiencies and improvements.

“Each of JEXWAY and NEXCO-West are well-known for their extensive experience and expertise in operating and maintaining toll roads, while JOIN is the first and only government-private fund in Japan that specialises in overseas infrastructure investment.”

Originally, CIIF held 20% equity interest in MUN. Following completion of the transaction, it will own a 9.68% stake.

After completion of the transaction, MPTC will continue to own majority stakes in MUN through PT Metro Pacific Tollways Indonesia, a wholly owned Indonesian subsidiary of the company.

Metro Pacific Tollways Indonesia holds an equity interest of 75.89% of PT Nusantara Infrastructure, which then owns a 74.98% stake in MUN.

MPTC also operates in Vietnam and Thailand. The company has plans for possible opportunities marking its entry in other countries in Southeast Asia.