TJH Acquires May Pen to Williamsfield Leg of Highway 2000

• TransJamaican Highway Limited (TJH) has advised that the Cabinet of the Government of Jamaica (GOJ) has approved the National Road Operating and Constructing Company Limited (NROCC) to accept TJH’s financial offer of US$20,300,000 plus potential Upside Formula amounts, to acquire the concession to operate and maintain Phase 1C of the Highway 2000 toll roads until November 20th, 2036. The government’s acceptance is subject to contract and additional conditions.
• This is in keeping with the Right of First Refusal granted to TJH contained in the Second Amended and Restated Concession Agreement dated January 29, 2020 with NROCC.
• Phase 1C is the recently completed extension of Highway 2000 between May Pen and Williamsfield. TJH operates and maintains the remaining elements of Highway 2000 consisting of Phase 1A (between Caymanas and Sandy Bay), Phase 1B (between Sandy Bay and May Pen) and the Portmore leg.
• TransJamaica stands to gain from this transaction as the Phase 1C road is a major thoroughfare along the south coast and will significantly reduce motorists’ travel time to Kingston from Mandeville. Increased traffic flows have bolstered and will continue strengthening the company’s topline. Management anticipates that Phase 1C will provide a boost to TJH’s revenues by an additional US$9Mn per annum which should also result in higher earnings,
• TJH’s stock price has increased by 14.0% since the start of the calendar year. The stock closed Thursday’s trading session at $3.09 and currently trades at a P/E of 9.0x, which is below the Main Market Energy, Industrial, and Materials Sector Average of 10.3x.

(Sources: JSE & NCBCM Research)