Atlas Arteria share price leaps 16% amid takeover speculation

Person pointing at an increasing blue graph which represents a rising share price.Person pointing at an increasing blue graph which represents a rising share price.

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.

The post Atlas Arteria share price leaps 16% amid takeover speculation appeared first on The Motley Fool Australia.

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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.

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