Atlas Arteria enters German toll road divestment talks, lifts distribution target as IFM takeover hits 40%
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The news: Atlas Arteria has entered exclusive discussions with French concession and construction group Eiffage S.A. for the potential sale of the Warnow Tunnel in Germany, as IFM’s stake in the toll road operator hits 40%.
The context: Atlas Arteria has been urging shareholders to reject an ongoing on-market takeover bid from IFM, which is set to close on 25 June at 7:00pm AEST.
While the bid was upwardly revised from an initial $4.75 to $5.10, Atlas Arteria maintains this still undervalues the toll road operator.
Aside from the divestment discussions, Atlas Arteria also announced it has increased its distributions target to 60 cents per security in the 12 months following the end of the offer period.
This would be funded through “a combination of distributions from Atlas Arteria’s portfolio cashflows, proceeds from potential asset sales and, where appropriate, utilising corporate borrowing proceeds”. Atlas Arteria said a potential divestment of the Warnow Tunnel would contribute an estimated 11 to 13 cents per security.
In a ninth supplementary bidder’s statement, IFM warned Atlas Arteria shareholders that if they did not accept the offer the value of their “securities may fall, potentially materially” given the pre-offer price was $4.33 per security.
IFM also reiterated that $5.10 per security is their best and final offer and the on-market takeover period will not be extended.
