IFM began building its stake in Atlas Arteria (then Macquarie Atlas Roads) around 2018, steadily accumulating shares over several years to become the largest shareholder (~34% today). It hasn’t been a sudden “raid”, more a long-term, strategic build that has now culminated in a takeover attempt.
NB: IFM Investors is a global infrastructure and private markets asset manager owned by 15 Australian industry superannuation funds, making it one of the rare institutional investors whose ultimate beneficiaries are the very workers whose retirement savings fund the assets it acquires.
This week’s hostile takeover bid is posted at $4.75 (~10% premium), rising to $5.10 if its stake exceeds 45%. Already ALX’s largest shareholder (~34%), IFM is effectively looking to privatise the toll road operator, arguing it can drive better performance outside public markets. The approach caught the board off guard, with an independent committee now reviewing the bid and advising shareholders to take no action. At face value, we feel the offer looks light. ALX has traded above $5.10 in the past year, and the market agrees, with the stock jumping 14% on expectations of a higher bid.
- We feel this is unlikely to be the final price. Now IFM have made a play, we believe they will be keen to get the deal done.
MM is now bullish ALX ~$4.80
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This morning we’ve briefly touched on five stocks often bracketed together that may attract capital if/when the takeover of Atlas Arteria goes ahead.
