Atlas Arteria’s Expert Labels IFM Global’s Offer ‘Not Fair or Reasonable’
Independent Expert’s Assessment of IFM Global’s Takeover Proposal
Background of the Offer
May 26 (Reuters) - Australia's Atlas Arteria said on Tuesday that its independent expert reinforced the company's earlier rejection of IFM Global Infrastructure Fund's proposal to buy the toll road operator at a valuation of A$6.89 billion ($4.94 billion).
Expert Report Findings
The independent expert's report concluded that the offer was neither fair nor reasonable, days after Atlas Arteria rejected the IFM's takeover offer, citing it as opportunistic and materially undervaluing the company.
Valuation Analysis
According to the independent expert, the valuation of the company is A$5.39 to A$6.20 per security, much higher than the offer price of A$4.75. It added that it would still be higher if the offer price was increased to A$5.10.
Details of IFM Global’s Proposal
Initial Offer Terms
In late April, IFM Global Infrastructure Fund proposed to buy all shares it did not own in Atlas Arteria via its investment unit Diamond Infraco 1 at A$4.75 per unit.
Conditional Price Increase
It had also said it would hike the offer price to a maximum of A$5.10 per share if it secured a 45% or higher stake before the offer closed.
Exchange Rate Information
($1 = 1.3949 Australian dollars)
Reporting Credits
(Reporting by Anjali Singh in Bengaluru; Editing by Rashmi Aich)
