Atlas Arteria directors urge rejection of IFM bid

The independent directors of Atlas Arteria (ASX:ALX) issued a formal recommendation for securityholders to reject an unsolicited, off-market takeover bid from IFM, labelling the proposal as "too low, opportunistic, and highly conditional".

The board’s scathing assessment claims the offer materially undervalues the global toll road operator and is designed to accelerate IFM’s "creep" to effective control without paying a fair premium.

Beyond financial concerns, the directors highlighted structural deficiencies and extensive conditions within the bidder’s statement, some of which they claim are already incapable of being satisfied.

In response, Atlas Arteria has filed an application with the Takeovers Panel to address these disclosure issues.

The timing of the hostile bid has also come under fire; it was launched just five days after Atlas Arteria issued a right of first offer notice regarding its interest in the Chicago Skyway, a move intended to optimise value for investors.

Demonstrating their lack of confidence in the proposal, each independent director has confirmed their intention to reject the offer for their own ALX securities.

To further strengthen their position, the company reaffirmed its distribution guidance of 40.0 cents per security for 2026, contingent on continued business performance.

Management has advised securityholders to protect their interests by simply ignoring all correspondence from IFM.

At the time of reporting, Atlas Arteria's share price was $4.80.