Macquarie Atlas Roads investors push to dump Macquarie as manager

Shareholders at Macquarie Atlas Roads are believed to be considering an extraordinary general meeting to dump Macquarie Group as its manager after becoming weary of paying what they believe are exorbitant fees to control the $3.7 billion global owner of toll roads.

The move comes after the shock announcement of the departure of Peter Trent on Friday. Mr Trent was said to be in the US when the announcement was made by Macquarie that he would be replaced in February by James Hooke, who has run Macquarie Infrastructure Corporation in the US.

The line from Macquarie is that Mr Trent was nearing retirement age and eager to step down, but others say he was on the side of investors to internalise Macquarie Atlas management and cut itself loose from Macquarie’s control.

One insider said Mr Trent also believed such a plan was in the best interests of shareholders, but that the bank was against such a decision.

Shareholders had been strongly supportive of his management style and skill, which had taken the fund from one worth $278 million to $3.7bn and are unhappy about his departure after eight years at the helm.

They are also eager to cut their ties with the investment bank group completely and internalise the fund’s management.

One of the major points of concern is that Macquarie appoints the management team of Macquarie Atlas and the fund’s board has no say in the process.

Macquarie Group declined to comment, but those close to the bank said his departure was not because he did not see eye-to-eye with the bank.

Within the Macquarie Atlas portfolio are a 20.1 per cent stake in the Eastern France toll road APRR, a 19.74 per cent interest in French road ADELAC, a 50 per cent stake in the Dulles Greenway in the US and a 70 per cent interest in the Warnow Tunnel in Germany.

Generating $54.2m of net profit for the six months to June, Macquarie Atlas Roads is a healthy fee earner for Macquarie Group.

Base fees to manage the fund are around $32 million per annum then 0.85 per cent of its market value.

Once internalised, Macquarie Atlas would still be liable to pay Macquarie a fee for managing its APPR European asset, given the shared ownership interests.

Among the major shareholders of Macquarie Atlas, according to Bloomberg data, are Macquarie Group with 15.29 per cent, Lazard Asset Management with 9.64 per cent and Yarra Funds Management with 6.68 per cent.

AMP also has 4.51 per cent of shares.

Should the shareholders of Macquarie Atlas succeed with their internalisation plans, the thinking is that Peter Trent could return to the top job.

Other executives that could be brought into the board are former Transurban boss Chris Lynch, outgoing Rio Tinto chief financial officer Andrew Head and other Transurban executives such as Wes Ballantine, Jennifer Aument.