Shares in self-storage giant Abacus Storage King | Australian Markets
A consortium of US traders, together with New York-listed Public Storage, has lobbed a $1.93 billion takeover offer for self-storage giant Abacus Storage King.
Operating as a real estate investment trust, Abacus Storage King owns and manages about 200 self storage areas throughout Australia and New Zealand, making it one of the industry largest gamers. It has 17 areas in WA, together with in Osborne Park and Perth Airport.
It informed traders on Monday it had acquired a conditional and non-binding proposal from Ki Corporation and Public Storage to amass all of the excellent stapled securities in Abacus Storage King for $1.47 per share, representing a 26.7 per cent premium to its $1.16 closing price on Friday.
South African tycoon Nathan Kirsh’s Ki Corporation is at present Abacus Storage King’s main shareholder, holding about a 59 per cent direct and oblique curiosity.
Should the acquisition happen, Ki Corporation and Public Storage would every own 50 per cent of the shares.
Abacus Storage King shares closed 20.7 per cent increased at $1.40 — one of the few market winners on Monday.
Abacus Storage King stated it had fashioned an unbiased board committee consisting of its unbiased administrators to evaluate the proposal, however had not fashioned any view on its advantage at this stage.
It stated the bid was subject to a quantity of situations, together with regulatory approvals from the Foreign Investment Review Board and the New Zealand Overseas Investment Office.
In a assertion, the buyout companions stated they had been offering certainty, liquidity and an enticing premium to minority securityholders and had been uniquely positioned to ship compelling worth and the best long-term end result for Abacus Storage King’s staff, prospects and extra stakeholders.
Public Storage stated self-storage property possession within Australia and New Zealand was extremely fragmented.
“Australia and New Zealand have an established and growing self-storage market that benefits from outsized population inflows, strong economic growth, and rising adoption by consumers,” it stated.
Investment bank Goldman Sachs is advising the consortium, whereas Macquarie is performing as Abacus Storage King’s financial adviser.
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