Atlas Arteria targets 60 cents amid takeover talks

• Atlas Arteria has entered exclusive discussions to sell its German Warnow Tunnel asset as its major shareholder increases its ownership stake to 40%.
• The company has raised its post-takeover distribution target to 60 cents per security to encourage investors to reject the current bid.
• The asset sale and enhanced payout targets form part of the board's defensive strategy to demonstrate independent value above the current offer.

Toll road operator Atlas Arteria (ASX:ALX) has entered exclusive discussions to sell its German Warnow Tunnel asset to French infrastructure group Eiffage S.A. as a major shareholder increases its stake to 40%.

This development follows an upwardly revised on-market takeover bid from IFM Global Infrastructure Fund of $5.10 per security, which the target board continues to reject.

The company stated that the potential divestment of the German tunnel asset is estimated to contribute between 11 cents and 13 cents per security.

Management also declared an increased distribution target of 60 cents per security for the 12 months following the close of the offer period.

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

The corporate suitor countered in its ninth supplementary statement by warning shareholders that the stock price could decline towards the pre-offer level of $4.33 if the transaction fails.

The current on-market takeover period is scheduled to close on June 25, with the bidder stating that the current price is its final proposal.