Atlas Arteria will now be led by new internal managers on termination of a management agreement with Macquarie Fund Advisers (Macquarie) with effect from 31 March 2019.
Initially notified in April 2018, Atlas Arteria (ASX: ALX) executed an agreement with Macquarie on the terms of the internalisation of the company’s management that will result into the termination of ongoing Macquarie’s management services to ALX.
Atlas today announced that its new management team under the leadership of Chief Executive Officer-elect Graeme Bevans will take over the full management of the company from 1 April 2019. The team of internalised management is to consist of CEO Graeme Bevans, Chief Financial Officer Nadine Lennie, General Counsel Clayton McCormack and Chief Operating Officer Vincent Portal-Barrault.
Graeme Bevans stated that the company has a highly experienced team of management with the right capability and effective systems and processes in place to ensure a smooth transition to independent management while working closely with Macquarie.
As per the transition arrangement, Macquarie management could continue until 15 May 2019, but since the ALX is ready for the transition, the ALX Boards have resolved to terminate the management agreements effective 1 April 2019. However, Macquarie will continue to receive a base management fee under the ALX Management Agreements until 15 May 2019.
The recruitment of new management team has been undertaken over the last 10 months during which Macquarie has continued to provide the full suite of management services to ALX as approved by the company’s security holders in the Annual General Meeting held at 15 May 2018.
The team of new management will reportedly continue to focus on generating long term value ALX security holders through investment in quality infrastructure assets providing access to long-dated, predictable and growing cash flows. The company further aims to pursue a disciplined approach to growth, primarily within the portfolio, together with continued operational improvement at the assets.
The company further announced that Graeme Bevans would also be on the Board of Atlas Arteria Limited (ATLAX) and Clayton will also be appointed as the Company Secretary of ATLAX, effective 1 April 2019.
On the front of outgoing executives, the company informed that James Hooke will step down as Chief Executive Officer of ALX, both Christine Williams and Lyndal Coates will retire from their role as Company Secretary of ATLAX and Bodie ter Kuile will step down as Chief Financial Officer of ALX, effective 1 April 2019. Further, the senior executive with Macquarie, Chris Leslie will so retire from the Board of Atlas Arteria International Limited (ATLIX), effective 1 April 2019.
Following internalisation, ALX will not be entitled to pay any further base or performance management fees to Macquarie for the general management of ALX. However, Macquarie will receive a base management fee till 15 May 2019 as stated above along with a fee for A$750,000 per month from 15 May 2019 until 31 December 2019 with respect to its ongoing specific services under the Transition Services Agreement.
Further, Macquarie will continue to act as manager of ALX’s interest in APRR and will be entitled to receive fees of EUR 7.4 million per annum for this service from 16 May 2019.
ALX stock price has edged up by 0.071% to trade at $7.055 on 25 March 2019 (1:41 PM AEST).
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