Atlas Arteria (ALX AU): IFM Creeps To A ~35% Stake

• Back on the 8th June 2022, IFM Global Infrastructure Fund announced a 15% stake in Atlas Arteria (ALX AU) (ATLAX), and subsequently floated the possibility of a non-binding proposal.

• However, IFM’s request, at the time, for limited company information on ATLAX , a US/Europe toll-road play, came to nought.

• Undeterred, IFM continues to accumulate shares. Reportedly, IFM now holds ~35% after picking up 1.9% this morning.

The Trade:

• IFM is playing the slow game.

• A full Offer cannot be ruled out.

• However, three and half years have elapsed since such discussions were first considered.

• Fundamentally, ATLAX appears attractive here.

• ATLAX boasts low risk, stable yielding, toll road assets. That’s attractive.

• Plus there are little to no viable options, in size, in Australia’s listed infrastructure space.