Atlas Arteria says IFM has ‘low level of acceptances’ for $7b takeover bid

The news: Toll road operator Atlas Arteria said its largest investor and hostile suitor IFM Investors has “at best received a low level of acceptances” for its $7 billion takeover offer, and reiterated its recommendation that shareholders reject the bid.

The context: In a second supplementary target’s statement, Atlas Arteria said IFM’s decision to extend its offer period by a week on Wednesday meant it avoided the need to disclose its voting power.

Atlas Arteria noted that any increase in IFM’s voting power of 1% must be announced on the ASX on the following trading day. No such increase has yet been announced.

IFM currently holds a 35% stake in Atlas Arteria. The terms of its original $4.75-per-share takeover proposal stated that IFM will increase its offer price to $5.10 per share if it has secured a 45% position before the close of the offer on 11 June. That deadline has now been extended to 18 June.