Atlas Arteria has reiterated its recommendation that shareholders turn down an improved takeover proposal from IFM Global, saying the revised bid does not reflect the value of the toll road business.
Offer details - IFM Global raised its price to A$5.10 per Atlas Arteria share from A$4.75, representing a total offer valuation of A$7.40 billion, equivalent to $5.23 billion. IFM labelled the revision its "best and final" offer.
Board response - Atlas had already dismissed IFM’s earlier approach, maintaining the position that the proposal undervalued the company. The board has again urged shareholders to reject the improved bid.
Hostile approach concerns - The company also issued a warning against any attempt by IFM to pursue a hostile acquisition route. That caution followed reports that IFM was contemplating an on-market raid to increase its holding in Atlas Arteria. Atlas’s alert highlights the potential for a contested stake-building strategy if the takeover negotiations remain unresolved.
Market reaction - Atlas Arteria’s shares rose modestly by 0.6% on the day the revised offer was disclosed, but that gain lagged the broader ASX 200 index, which climbed 1.3%.
Context and immediate implications - The dispute centres on valuation: Atlas has judged both the original and the improved approaches to be insufficient. IFM, for its part, has presented the A$5.10-per-share price as its final position. The potential for further action by IFM to increase its stake was flagged in market reports and prompted an explicit response from Atlas.
At this stage, shareholders have been asked to reject the proposal put forward by IFM, and the situation may unfold further depending on whether IFM pursues any additional routes to acquire a larger holding.