IFM shuts the gates on Atlas Arteria takeover

IFM Investors has walked away from takeover discussions after the toll road operator refused access to more financial documents.

Toll road operators are in recovery mode after Covid-19 lockdowns. Picture: Nigel Hallett

IFM Investors has walked away from takeover discussions with toll road operator Atlas Arteria after the target refused to give the global infrastructure investor access to more detailed financial documents.

Last month, IFM disclosed that it had amassed a 15 per cent stake in Atlas and the board ofthe toll road operator in France, Germany, and the US said it would not provide IFM non-public information “at this time”.

IFM Global Infrastructure Fund met with senior management from ALX three times since amassing the 15 per cent shareholding.

“Following those meetings, IFM Investors confirms that IFM GIF is not presently in a position to meaningfully progress a proposal with ALX and has determined to cease discussions with ALX,” IFM Investors said in a statement.

“However, it reserves the right to recommence discussions with ALX in the future,” IFM added.

Toll road operators are in recovery mode after Covid-19 related lockdowns and travel restrictions saw a slump in the amount of vehicles using their roads.

However, Atlas Arteria shares have risen 17.6 per cent this year, bolstered by IFM Investors interest in the company. Its shares currently trade at a price to earnings ratio of 47 times.

The company was born of the restructured Macquarie Infrastructure Group, which created both Atlas Arteria and Intoll, with the latter taken over by the Canada Pension Plan Investment Board for $3.5bn in 2010.

IFM is a $181bn asset manager, which invests on the behalf of more than 550 institutions including superannuation funds.

A foray into Atlas Arteria would see IFM’s take a greater stake in global toll road assets. The fund manager already owns stakes in Sydney’s Eastern Distributor toll road, the UK’s M6 Toll and the US’s Indiana toll road near Chicago