Atlas Arteria (ALX) isn’t officially “in play” via a takeover, but it does have significant activist interest. IFM Investors has steadily increased its stake—from around 29.9% to approximately 32.6%, using the “creep” provision. ALX is a global owner, operator, and developer of toll roads, which dovetails perfectly into IFM’s suite of investments – a takeover in 2025/6 feels almost inevitable. ALX is well-positioned to maintain its 40c unfranked dividend over the coming years, putting the stock on an attractive 7.6% yield, helping patient investors. We believe the damage is over on the downside, and the risk-reward looks particularly attractive with a potential takeover on the table and interest rates set to fall.
NB IFM Investors is a global investment manager owned by 15 Australian industry super funds and one UK pension fund, overseeing around $US145 billion.
- We are bullish on ALX through 2025/6; it’s an option for both our Active Growth and Income Portfolios.
MM is cautiously bullish on ALX
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