IFM Investors lifts Atlas Arteria stake to 38.83%

• Institutional fund manager IFM Investors expanded its voting power in toll road operator Atlas Arteria to 38.83% amid a contested off-market buyout process.
• The target company's stock held steady at $5.10, matching the revised, unconditional cash consideration put forward to shareholders.
• The bidder eliminated all outstanding regulatory and defeating conditions to accelerate on-market and off-market acceptances before the upcoming transaction deadline.

Institutional fund manager IFM Investors increased its ownership stake in toll road operator Atlas Arteria (ASX:ALX) to 38.83% as the ongoing corporate takeover dispute accelerated.

The accumulation followed a brief trading window on June 15 when the bidder controlled a 34.59% position and subsequently increased its cash purchase offer from $4.75 per share to $5.10 per share.

The target company clarified that the public statements from the bidder regarding a twelve-month price freeze do not prevent securityholders from participating in alternative structures where they might receive greater than $5.10 per security.

The bidding entity officially declared the acquisition proposal entirely unconditional on June 17 after clearing its final necessary regulatory approval hurdles.

The board of the infrastructure operator continued to recommend that its retail and institutional investors reject the buyout proposal because the directors believe the current dollar amount undervalues the underlying transport assets.

Following the announcement, the Atlas Arteria share price was unchanged at $5.10.

The formal offer timeline is currently scheduled to finish on June 25 unless a subsequent corporate extension is registered with market regulators.