Atlas Arteria and IFM trade blows over billion dollar valuation gap
The board of the toll road group has the backing of at least one major shareholder. But a hostile takeover from its largest investor may be inevitable.
One of the year’s biggest M&A tussles has descended into a war of words as toll road giant Atlas Arteria and its suitor and largest shareholder IFM Investors continue to exchange barbs over a billion-dollar valuation gap.
The latest jibe arrived on Tuesday, as Atlas Arteria called out IFM’s “attack” on independent expert Kroll, which reiterated its control valuation for the company at between $5.39 and $6.20 per share (or $7.8–9 billion) after IFM claimed its report was “unbalanced”, “selective” and “misleading”.
The board, which includes two IFM-nominated directors, has urged shareholders to reject the $4.75-per-share bid, valuing the company at a little under $7 billion, calling the takeover approach “extremely hostile”.
Global investing firm VanEck, one of the largest holders of Atlas Arteria shares, is siding with the board — for now.
