Atlas Arteria share price halted amid $2.9 billion acquisition

The Atlas Arteria Group (ASX: ALX) share price is frozen today amid news of a major acquisition.

Before being placed on ice, the toll road company’s share price was trading at $7.81.

So what is going on at Atlas Arteria?

Atlas to acquire Chicago toll road

Atlas Arteria plans to acquire a 66.67% majority interest in the Chicago Skyway in the city of Chicago, Illinois.

The 12.5-kilometre toll road connects the Indiana Toll Road to the Dan Ryan Expressway on Chicago’s south side.

The toll road has 81 years of concession life remaining. Ontario Teachers’ Pension Plan will retain a 33.3% interest in the toll road.

Atlas has gone ahead with the acquisition despite threats from IFM Investors to spill the board if it purchases the US toll road, the Australian Financial Review reported.

The acquisition, subject to regulatory approvals including from the City of Chicago, is valued at US$2,013 million. This is equivalent to about $2.92 billion Australian dollars, based on the current exchange rate.

Atlas requested a trading halt on Tuesday morning while the company finalises details of an entitlement offer to fund the acquisition.

The trading halt is expected to end once Atlas has completed the institutional component of the offer. UBS and RBC Capital Markets are managing the capital raising on behalf of Atlas.

Meanwhile, Atlas has also announced a 20-cent per share unfranked dividend for FY22. Atlas will trade ex-dividend on 21 September and the dividend will be paid on 3 October.

Share price snapshot

The Atlas Arteria share price has soared 16% in the past year while it has climbed nearly 13% year to date.

However, in the last month, Atlas shares have lost nearly 2%.

Atlas Arteria has a market capitalisation of $7.48 billion based on the current share price.

The post Atlas Arteria share price halted amid $2.9 billion acquisition appeared first on The Motley Fool Australia.

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Motley Fool contributor Monica O’Shea 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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