Company Interview / Bid buffet: Traders circle ASX takeover targets

Key points

Atlas Arteria (ASX:ALX) bid from IFM seen as underpriced versus past offer European Lithium (ASX:EUR)–Critical Metals deal viewed as structurally attractive but hedge‑intensive Australian Strategic Materials (ASX:ASM) options collapse seen as a cleaner, cash‑based play Monash IVF (ASX:MVF) rejection of $0.90 offer sets stage for future hostile or higher bids - Large Asian private equity funds expected, in Sproats’ view, to drive more Australian buyouts

Nic Sproats from Harvest Lane Asset Management sees a busy period ahead for merger arbitrage, with several Australian and global deals creating opportunity. Sproats points to the contested play for Atlas Arteria (ASX:ALX), where IFM Global Investors has lifted its offer yet, in his view, the pricing around $4.75–$5.10 per share is unlikely to draw board support given IFM’s prior $8.10 approach and ongoing strategic tensions over Atlas Arteria’s M&A ambitions.

In resources, Sproats highlights European Lithium (ASX:EUR) and its complex merger with Nasdaq-listed Critical Metals, characterising it as effectively a self-buyout that simplifies the joint venture structure and could be lucrative for those able to hedge Nasdaq exposure. He also notes Australian Strategic Materials (ASX:ASM), where Energy Fuels’ bid has secured FIRB approval and the options collapse offers an attractive all‑cash angle compared with the scrip-heavy equity component.

Sproats remains focused on Monash IVF (ASX:MVF), where a $0.90 offer from Saltpans and Genesis has been rejected, leaving the share price around $0.74 and setting up potential hostile tactics later this year. He also flags record Asian private equity fundraising by EQT and Barings as a catalyst for more public‑to‑private activity in what he views as an undervalued Australian market.