The Atlas Arteria Group (ASX: ALX) share price is up 13% after the business received a takeover offer.
Atlas Arteria is one of the largest toll road operators across the world. It has toll roads in both the US and Europe.
Takeover offer
The business has reported to the ASX today that it has received a takeover offer from IFM Investors, a global institutional investor and asset manager.
It’s essentially a global pension collective, which is owned by 15 Australian industry super funds and one UK pension fund. Owners include AustralianSuper, Australian Retirement Trust, Cbus, HESTA, Hostplus and Nest.
The ASX share noted that IFM had not communicated with Atlas Arteria prior to sending in a $7 billion takeover offer.
The offer price is A$4.75 per Atlas Arteria share, representing a premium of – using Atlas’ word – “only” 10% based on the last closing share price.
IFM has reportedly indicated that the price will be increased to A$5.10 per security if the bidder’s relevant interest in Atlas Arteria shares reaches 45% or more before the closing date of the offer.
Atlas Arteria also noted that IFM Investors has made some ‘best and final’ statements in relation to the offer.
Investment conditions
The ASX share noted that the offer is subject to a number of conditions including conditions which involve third party consents, approvals or waivers.
Atlas Arteria noted that the conditions of the offer “may or may not be satisfied”. These conditions need to be satisfied (or waived) for the offer to be accepted.
What happens next?
The boards of Atlas Arteria will establish an independent board committee (IBC) to consider the offer.
At this stage, the company has advised that shareholders take no action in relation to the offer.
The IBC will, together with advisers, consider and evaluate the offer. Shareholders will be updated “in due course”.
UBS and Flagstaff have been appointed as financial advisers, while Mallesons will be the legal advisers.
It’s good to see an investor recognise the value of the business. However, it has been higher than $5.10 in the past 12 months, so I’m not sure if this is the right time to invest.
