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Atlas Arteria Rejects IFM's Sweetened AU$7.4 Billion Takeover Offer

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Atlas Arteria Rejects IFM's Sweetened AU$7.4 Billion Takeover Offer

Australia-listed toll road operator Atlas Arteria (ASX: ALX) rejected IFM Investors' improved takeover proposal and urged shareholders to take no action, arguing the bid fails to reflect the value of its assets and growth prospects.

"The independent directors unanimously recommend that you reject the offer," Atlas Arteria said in a Monday statement.

The response came after IFM raised its offer to AU$5.10 per security from the earlier AU$4.75, describing it as its "best and final" proposal unless a competing bid emerges.

At the latest offer, the revised price tag values the toll road operator at approximately AU$7.4 billion.

The latest offer comes more than a month after Atlas Arteria rejected IFM's initial proposal, describing it as a "hostile, highly conditional takeover offer" that "materially undervalues" the company.

The toll road operator said at the time that the bid failed to adequately reflect the value of its global toll road portfolio and embedded growth opportunities.

Atlas Arteria also said the earlier proposal was subject to conditions that "may never be satisfied or waived," while some were already incapable of being satisfied.

The company's independent expert, Kroll Australia, concluded that the offer is "neither fair nor reasonable," according to Atlas Arteria's target statement.

IFM held voting power of 34.48% in Atlas Arteria as of the bidder's statement.

The offer is scheduled to close on June 11 unless extended in accordance with Australian takeover rules.

Atlas Arteria said securityholders who wish to follow the board's recommendation do not need to take any action and should ignore documents sent by IFM and the bidder.

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