Public Storage and Ki Corporation have made an unsolicited takeover proposal to Abacus Storage King (ASK), which operates self-storage facilities in Australia and New Zealand. ASK currently owns around 126 operating properties, 21 development sites and 75 managed/licensed properties. Public Storage and Ki submitted the non-binding indicative offer after markets closed last week, aiming to acquire all outstanding stapled securities in ASK that are not already owned by Ki or its subsidiaries. Should the acquisition take place, Ki Corporation and Public Storage would each own 50 per cent of the shares.
Public Storage said the offer would bring “certainty, liquidity, and an attractive premium to minority securities.” It added that, similar to its success with Shurgard Self Storage in Europe, Public Storage would share its expertise and wide-ranging competitive advantages to help enhance Abacus Storage King’s customer experience, operating performance, ancillary businesses, and portfolio growth.
“As a significant and long-term securityholder, we have remained an active supporter and partner to Abacus Storage King and its success," said Bradley Fried, chief executive officer of Ki Group (Ki currently holds a direct and indirect interest of approximately 59.39% in ASK). "However, the entity has continued to underperform relative to peers and the broader market since listing."
Abacus Storage King shares closed 20.7 per cent higher at $1.40 today in Australia, one of the few market winners following President Trump's "Liberation Day," which implemented tariffs on the goods and materials coming from approximately 90 countries.
Abacus Storage King said it had formed an independent board committee consisting of its independent directors to assess the proposal, but had not formed any view on its merit at this stage. It said the bid was subject to a number of conditions, including regulatory approvals from the Foreign Investment Review Board and the New Zealand Overseas Investment Office.
Investment bank Goldman Sachs is advising the consortium, while Macquarie is acting as Abacus Storage King’s financial adviser.