Atlas Arteria share price leaps 16% amid takeover speculation

A major infrastructure fund appears to be eyeing off Atlas Arteria.

| More on:
Person pointing at an increasing blue graph which represents a rising share price.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The Atlas Arteria share price lifted 17% to a new multi-year high of $8.35 this morning 
  • Its gains came on the back of news that IFM has snapped up a 15% holding in the company and might put forward a takeover bid in the future 
  • The infrastructure fund completed its parcel of Atlas Arteria shares after the market closed last night, paying $8.10 apiece to do so 

The Atlas Arteria Group (ASX: ALX) share price is leaping on news IFM might be lining up a takeover approach.

The IFM Global Infrastructure Fund has snapped up around 15% of the company’s stock and indicated it might submit a takeover bid.

At the time of writing, the Atlas Arteria share price is $8.26, 16.27% higher than its previous close.

Though, that’s down from its intraday – and new 52-week – high of $8.35 – representing a 17.6% gain.

Let’s take a closer look at today’s news from the global toll road operator.

Atlas Arteria flags potential takeover interest

The Atlas Arteria share price is rocketing higher after IFM indicated that it might ask for limited company information to potentially build an acquisition offer.

To kick start the potential takeover process, the fund has acquired a 15% stake in the S&P/ASX 200 Index (ASX: XJO) infrastructure giant.

It paid $8.10 per share after the market closed yesterday for the final piece of that holding. Such a price tag represents a 14% premium on Atlas Arteria’s previous close.  

A full takeover of Atlas Arteria could set IFM back $7.8 billion, the Australian Financial Review reports.

According to a release from the company, IFM indicated that any proposal it might submit would be subject to the completion of due diligence, as well as other conditions.

So far, IFM hasn’t requested more information from Atlas Arteria, nor has it proposed to buy any additional shares.

In fact, the company was clear in saying there’s no guarantee of any takeover bid at this stage. Thus, shareholders don’t need to take any action.

Nevertheless, the potential of a future acquisition offer – as well as IFM’s apparent belief Altas Arteria shares are worth $8.10 apiece – has excited the market this morning.

IFM was the leader of the consortium that snapped up the formerly-ASX listed Sydney Airport in February.

Atlas Arteria share price snapshot

Today’s gains have helped boost the Altas Arteria share price even further into the green.

Right now, the company’s stock is 19.5% higher than it was at the start of 2022. It has also gained 29% since this time last year.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Mergers & Acquisitions

Two men shaking hands on a merger.
Mergers & Acquisitions

HRL share price jumps 10% as board backs takeover from ALS

HRL has accepted ALS' takeover offer...

Read more »

A young male investor wearing a white business shirt screams in frustration with his hands grasping his hair after ASX 200 shares fell rapidly today and appear to be heading into a stock market crash
Mergers & Acquisitions

Why is the Carsales share price crashing 15% lower today?

Carsales shares are sinking on Wednesday. Here's why...

Read more »

A little girl with red hair runs excitedly with a rocket strapped to her back, trying to launch.
Mergers & Acquisitions

Guess which small-cap company is soaring 71% on a takeover bid from an ASX 200 share

ALS’ non-binding takeover offer represents a massive premium on HRL’s recent share price.

Read more »

A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face over these rising Tassal share price
Mergers & Acquisitions

Tassal share price rockets 14% on $1 billion takeover bid

The board of the Tasmanian-based salmon farming company believes the takeover proposal is not in the best interests of shareholders.

Read more »

Business meeting
Mergers & Acquisitions

Link share price pushes higher despite revised takeover offer

Link shares are pushing higher on Monday following a takeover update...

Read more »

Projection of two hands being shaken on a deal.
Mergers & Acquisitions

2022 has seen a record first half for ASX mergers and acquisitions. Here’s the lowdown

Deals have hit new heights in Australia so far this year.

Read more »

Man looking excitedly at ASX share price gains on computer screen against backdrop of streamers
Mergers & Acquisitions

Guess which ASX software share just rocketed 150% on takeover news

PayGroup shares are moving into uncharted territory today.

Read more »

Bank Shares

ANZ share price rises as MYOB acquisition rumours swirl

Is ANZ about to make a major acquisition?

Read more »