IFM eyes another board seat at Atlas Arteria
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The news: IFM Investors is looking to beef up its presence on the Atlas Arteria board at the toll road operator’s next annual general meeting.
The context: IFM Investors is Atlas Arteria’s largest shareholder with 24.5% and has one non-executive director on the board, Ken Daley, who is a special adviser to the IFM Global Infrastructure Fund (IFM GIF).
Atlas Arteria’s constitution provides for a maximum of seven directors, and IFM has proposed to increase this to eight for an additional representation and to nominate IFM global head of asset management, infrastructure, Danny Elia, to the board.
In its AGM notification, Atlas Arteria said the board and IFM GIF were in discussions as to whether it was appropriate for an additional IFM GIF nominee to be appointed.
There is another proposal to increase the fee pool for the board’s non-executive directors from $1,500,000 to $1,700,000 per annum to accommodate the extra director.
In 2022, Atlas Arteria proposed to purchase a 66.6% stake in Chicago Skyway for $2.9 billion. IFM tried to stop the purchase by sending a letter that warned it would try to spill the board if the deal went ahead. IFM was against the deal as it believed the purchase would be significantly value destructive. Despite the objections, Atlas Arteria went through with the deal.
Earlier this month, Atlas Arteria announced its CEO Graeme Bevans has notified the board of his intention to retire.
Atlas Arteria shares have fallen 16.85% over the past year.
The source: ASX announcement
