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Highlights
- Abacus Storage King declines acquisition offer over valuation concerns
- Independent review reveals higher net tangible asset value
- Strategic spin-off purpose questioned by bidding consortium
In a notable development within the ASX300 space, self-storage company Abacus Storage King (ASX:ASK) has officially declined an acquisition proposal from a consortium led by Public Storage and Ki Corporation. The offer of A$1.47 per share was reviewed by an independent board committee, which ultimately deemed it insufficient to reflect the true value of the business.
According to a statement released to investors, the committee concluded that the proposal “did not reflect fair value” for shareholders. One of the key concerns cited was that the conditions set by Ki Corporation introduced “timing risk and completion risk,” making the deal less attractive from a strategic standpoint.
Adding further clarity, Abacus Storage King commissioned an independent valuation which determined the company’s net tangible asset (NTA) per share stands at A$1.73 — significantly above the bid price. This NTA figure played a critical role in the board’s recommendation to reject the offer, reinforcing their view that the proposal undervalued the company’s underlying assets and potential.
Abacus Storage King (ASK), which demerged from its parent Abacus Group (ASX:ABG) two years ago, was originally positioned for greater operational flexibility and accelerated project development. However, the bidding consortium argued that these objectives have not been achieved under the current corporate structure. According to them, the spin-off has yet to unlock the intended value or enhance access to capital markets.
This disagreement over strategic direction and valuation underscores ongoing debates around how best to manage real asset portfolios, particularly those offering regular income. As part of the broader ASX300, Abacus Storage King also remains of interest to investors seeking exposure to ASX dividend stocks, given its consistent revenue profile tied to the resilient self-storage sector.
As discussions around the company’s long-term strategy continue, the latest rejection signals that the board remains focused on safeguarding shareholder interests through comprehensive valuation practices and risk assessments. Market participants will be closely watching how this standoff evolves and whether the bidding parties return with a revised offer that aligns better with the company’s perceived intrinsic value.
