Business
IFM makes final $5.2B push to acquire Atlas Arteria
Atlas Arteria has rebuffed IFM Investors' increased A$7.4 billion takeover proposal, extending a high-profile infrastructure acquisition battle. The toll-road operator argues the revised offer still falls short of its underlying value, citing strong revenue growth, cash generation and strategic assets across France and the United States.
Atlas Arteria knocked back IFM Investors' revised $A5.20 a share takeover offer that valued the Australian toll road operator at approximately $A7.4B.
The offer continues a takeover battle, with pension-backed investors pursuing long-term cash-generating transport assets in Australia, which has captured interest across the infrastructure sector. IFM is the owner of approximately 35% of Atlas Arteria and describes the new offer, a 10 cent a security increase from their prior bid, as a best and final offer.
Board committee remains unconvinced of the value of the proposal
Atlas Arteria's independent board committee unanimously recommended shareholders to reject the revised offer. This committee stated that the offer does not properly recognize the company's asset base or its prospect for future earnings.
The company currently holds stakes in APRR's motorway network in France, and the Chicago Skyway and Dulles Greenway toll-road assets in the US. These infrastructure projects contribute to Atlas Arteria's direct access to traffic patterns in transport corridors across Europe and the US.
According to the committee, the offer does not reflect the strength of these assets and operating performance metrics.
Earning growth bolsters Atlas Arteria's claim over the price of the securities.
Atlas Arteria's most recent financial report showed increases of 9.4% and 9.3% in proportional toll revenue (to $A2.01B) and proportional EBITDA (to $A1.51B) respectively in 2025 compared with the previous year. Statutory net profit after tax was $A181.8M, and the company reaffirmed a distribution forecast of 40 cents per security in 2025 and 2026.
Atlas Arteria's financial report in 2025 has been central in the pricing of the shares, as the company used revenue and cash generating capacities as proof of their portfolio's value compared to IFM's bid.
Infrastructure investors are watching intently as the saga develops
The situation is of keen interest to both Australian and US-based infrastructure investors. This comes despite the recent sell-off on global markets, with demand for airports, toll-roads, and utilities remaining firm, especially those that hold the potential for consistent, long-term cash flows.
Shareholders were urged by IFM to accept the offer. Atlas Arteria is continuing to advocate for a rejection of the offer from their shareholders. IFM declared the offer to be final; and shareholders will therefore be the decision-makers on the company's continued independence.
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