April 27 (Reuters) - IFM Global Infrastructure Fund unveiled an offer on Monday to buy all the shares it does not currently own in Atlas Arteria, valuing the Australian toll road operator at A$6.89
Atlas Arteria Shares Soar on IFM Global’s $4.9 Billion Takeover Proposal
IFM Global Infrastructure Fund’s Offer and Market Reaction
Overview of the Takeover Proposal
April 27 (Reuters) - IFM Global Infrastructure Fund unveiled an offer on Monday to buy all the shares it does not currently own in Atlas Arteria, valuing the Australian toll road operator at A$6.89 billion ($4.92 billion).
Share Price Surge
Shares of Atlas Arteria jumped as much as 15.5% to A$5 by 0029 GMT, hitting their highest in two months and marking their biggest intraday percentage gain since June 8, 2022.
Details of the Offer
Offer Structure and Premium
IFM Global Infrastructure Fund via investment unit Diamond Infraco 1 offered to buy all the remaining shares of Atlas Arteria at A$4.75 per share, representing a premium of about 9.7% to the stock's last close on Friday.
Current Stake and Acquisition Limitations
Diamond Infraco 1 said it currently holds 34.48% interest in Atlas Arteria and has limited ability to acquire further stake without making a takeover offer.
Potential Increase in Offer Price
The offer price will be increased to a maximum consideration of A$5.10 per share if its relevant interest in Atlas Arteria is 45% or more before the close of the offer, Diamond said.
The maximum consideration is the "best and final" offer and will not be increased further in the absence of a competing proposal, Diamond said.
Strategic Rationale and Company Performance
Atlas Arteria’s M&A Strategy
"Atlas Arteria has recently indicated that it is actively looking at new M&A opportunities with funding flexibility," Diamond said, adding that the target company had underperformed in total shareholder return against global listed infrastructure and other market indexes.
Financial Performance
In fiscal 2025, Atlas reported a 39.4% drop in statutory net profit after tax to A$181.8 million.
Next Steps and Conditions
Board Review and Offer Conditions
Atlas Alteria said it would establish an independent board committee to consider the offer while noting that the offer was subject to several conditions, including conditions that involve third-party consents, approvals, or waivers.
Exchange Rate Information
($1 = 1.3998 Australian dollars)
Reporting Credits
(Reporting by Sneha Kumar in Bengaluru; Editing by Tom Hogue and Subhranshu Sahu)
