Australian company challenges its best investor and buys Chicago Skyway stake from Canada Pensions

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(Bloomberg) – Atlas Arteria Ltd. agreed to buy a $2 billion stake in the Chicago Skyway toll highway despite strong opposition from the Australian company’s largest shareholder.

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The Canada Pension Plan Investment Board and OMERS Infrastructure have sold their respective one-third shares in the 12.5-kilometre (7.8-mile) road linking downtown Chicago to its southeastern suburbs. is. The agreement forms a business with the Ontario Teachers’ Pension Plan, which will retain one-third of the interest, according to a statement released Tuesday.

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A fundraiser will help finance the operation, the details of which will be provided “in due course”, according to Atlas Arteria.

The acquisition was announced despite a strong statement on Monday from Atlas Arteria’s largest shareholder, IFM Investors, following confirmation of the talks. He said the deal could potentially be “distribution-dilutive” and those concerns were shared by other significant shareholders.

Shares of Atlas Arteria fell 2.1% in Sydney on Monday. Trading in the stock was suspended Tuesday morning.

“If the company pursues this course of action, IFM Global Infrastructure Fund will consider all legal options available to it, including seeking an expedited board transition through an EGM, in order to protect its interests. as a shareholder of the company,” IFM said. .

The acquisition is subject to regulatory approvals, including City of Chicago consent.

(An earlier version of this story deleted an incorrect stock price move.)

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