Atlas Arteria agreed to buy a $2 billion stake in the Chicago Skyway toll road despite strong opposition from the Australian company's biggest shareholder.
The C$523 billion ($398.3 billion) Canada Pension Plan Investment Board, Toronto, and OMERS Infrastructure sold their respective one-third stakes in the 7.8-mile road linking downtown Chicago to its southeastern suburbs. The deal forms a venture with Ontario Teachers' Pension Plan, Toronto, which will retain a one-third interest, according to a statement Tuesday.
An equity raising will help fund the deal, for which details will be provided "in due course," according to Atlas Arteria.
The acquisition was announced despite a strongly worded statement Monday from Atlas Arteria's biggest shareholder IFM Investors, following confirmation of the talks. It said the deal could be potentially "dilutive to distributions" and that those concerns were shared by other major shareholders.
"We are disappointed with the decision by Atlas Arteria to proceed with the acquisition of Chicago Skyway," an IFM spokesman said via text message. "As a major shareholder, we are considering our options."
IFM said it could seek "an accelerated board transition by way of an EGM (extraordinary general meeting), to protect its interests as a shareholder of the company" if the deal went ahead.
The acquisition is subject to regulatory approvals including consent of the city of Chicago.
