Abacus Storage King (ASX:ASK) has acknowledged receiving a revised takeover proposal from a consortium comprising South African billionaire Nathan Kirsh’s Ki Group and US-listed Public Storage. The offer is valued at $1.65 per share, representing a 14.7 per cent increase from the consortium’s initial $1.47 per share bid. Abacus Storage King provides self-storage solutions to individuals and businesses. The company owns and operates storage facilities across Australia and New Zealand.
The ASK independent board committee is considering the revised proposal, with the intention of granting a six-week due diligence period to the consortium. This period will allow the consortium to assess whether a binding proposal can be formulated that the board can recommend to security holders. However, access to due diligence is contingent upon the parties reaching agreement on non-disclosure and standstill arrangements.
The company has stated that there is no guarantee that terms will be agreed upon to implement the revised proposal. Furthermore, even if terms are agreed, there is no assurance that the conditions attached to the revised proposal will be satisfied or waived. The offer, worth $2.17 billion, reflects a 42.2 per cent premium on Abacus Storage King’s share price prior to the consortium’s initial approach in early April.
