Atlas Arteria lodges target statement rejecting IFM hostile takeover
Make us a preferred source
Make us a preferred source on Google
The news: The board of Atlas Arteria has urged shareholders to reject a $7 billion hostile takeover offer from IFM Investors, lodging a target’s statement describing the bid as “too low, opportunistic and highly conditional”.
The context: In a letter to shareholders, the toll road operator’s independent chairs Debra Goodin and Fiona Beck said greater value will be realised through current “operational and strategic initiatives” across the group, and potential divestments, including its Chicago Skyway toll road.
They said the view has been reinforced by an independent expert report, which concluded the offer is “neither fair nor reasonable”.
IFM has offered $4.75 cash per share, increasing to $5.10 per share if it secures a 45% interest in the company before the close of the offer.
In the target statement, Atlas Arteria’s independent directors said the offer “materially undervalues” the company, with the offer price representing a premium of less than 10% to the last closing price when the bid was made.
The independent expert put the company’s control valuation range at between $5.39 and $6.20 per share.
Shares last closed at $4.84.
The source: ASX
