Atlas Arteria rejects $7b hostile takeover by IFM, applies to Takeovers Panel

The news: Toll road operator Atlas Arteria has recommended its shareholders reject a $7 billion hostile takeover from IFM Investors, announced last month, describing the offer as “too low, opportunistic and highly conditional”.

The context: The company said the offer “materially undervalues Atlas Arteria and is opportunistic in its timing”. It said the offer is subject to “extensive conditions” that may never be satisfied or waived, with some of those “already incapable of being satisfied”.

Atlas Arteria said it has also made an application to the Takeovers Panel, noting “structural deficiencies” with the offer and the disclosure in the bidder’s statement.

What they said: “This hostile, highly conditional takeover offer from IFM is opportunistic and materially undervalues Atlas Arteria,” said chair Debbie Goodin.