Aussie super-backed IFM invests US$504m in Mexican infrastructure
IFM Investors, which is owned by Australian industry superannuation funds, has announced its Global Infrastructure Fund (IFM GIF) has acquired a 13.96% stake in Mexican transport infrastructure firm Aleatica.
The acquisition of shares of Aleatica, through the successful voluntary tender offer, represented an investment of US$504 million from IFM GIF and the move will bring a total indirect ownership in Mexican company for IFM GIF, advised by IFM Investors, to 99.94%.
IFM GIF, which has been investing in Mexico for eight years, has said that Aleatica had over US$4.7 billion invested in transportation infrastructure as of December 2022, which represented more than a third of total foreign direct investment in road development in Mexico since 1999.
IFM GIF also said that with the necessary number of shares to be acquired as a result of the Tender Offer, IFM GIF, through one or more indirect subsidiaries, would intend to seek the voluntary delisting of Aleatica’s shares from the Bolsa Mexicana de Valores (BMV), the owner and operator of the Mexican Stock Exchange.
The delisting of Aleatica’s shares will remain subject to obtaining the necessary corporate and regulatory authorisations, including the approval of the Comisión Nacional Bancaria y de Valores (CNBV) in Mexico, it said.
Aleatica is an operator of transportation infrastructure concessions in the metropolitan area of Mexico City with a portfolio of seven toll roads and one airport.
Aleatica’s toll road concessions are located in areas with high vehicle traffic and are essential in supporting the transportation needs of motorists in Mexico City, the State of Mexico, and the State of Puebla.
A few years ago IFM had to front a parliamentary committee regarding returns falsification of over-valuing this asset on their balance sheets at $50MXN ($AUD3.79) compared to the actual listed share value on the Mexican stock exchange of $29MXN ($AUD1.52).
Bernie Madoff was a great believer in that form of valuation method too.
Fully buying and delisting Aleatica will now make life easier for IFM to be totally unaccountable about returns for international shares/infrastructure now, just like their other unlisted/other/alternatives investment values.
Edited version with some more details:
A few years ago IFM had to front an Australian Standing Committee on Economics regarding returns falsification of over-valuing this asset on their balance sheets at $50MXN ($AUD3.79) compared to the actual listed share value on the Mexican stock exchange of $29MXN ($AUD1.52) by at least $AUD3Billion.
They were also ordered by the Mexican National Banking and Securities Commission to reclassify assets on its balance sheet and make changes to its income statement.
It was also stated that the higher valuation allowed IFM to charge bigger performance and management fees to investors in its Global Infrastructure Fund than they otherwise would have received at the normal Mexican listed stock market price.
Bernie Madoff was a great believer in that form of portfolio valuation & returns methodology too, though possibly he may have charged less fees than these guys.
Fully buying and delisting Aleatica will now make life easier for IFM to be totally unaccountable about returns for international shares/infrastructure, as per their other unlisted/other/alternatives investment values.