Why Did Abacus Storage King Reject a Takeover Amid ASX 300 and ASX Property Index Involvement?

May 13, 2025 11:30 AM AEST | By Team Kalkine Media

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Why Did Abacus Storage King Reject a Takeover Amid ASX 300 and ASX Property Index Involvement? — Image source: shutterstock

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Highlights

Abacus Storage King (ASK) declined a bid from Ki Corporation and Public Storage

Independent valuation placed above the consortium's proposed figure

Board cited transaction conditions and timing issues in its response

Abacus Storage King (ASX:ASK), part of the ASX 300 and ASX Property indexes, operates within the self-storage segment of the real estate sector. This niche has drawn sustained attention due to increased urbanisation and demand for adaptable storage solutions. The company has recently gained market focus after its board rejected a bid from a consortium involving Ki Corporation and NYSE-listed Public Storage.

Details Surrounding the Rejected Bid

The consortium’s offer was formally declined by the Abacus Storage King board. The decision followed a review of terms presented in the proposal, which was priced below the company's own valuation assessment. This offer had been structured with multiple conditions that required regulatory clearance, which the board evaluated alongside the offered price per share.

Valuation Review and Standalone Assessment

Abacus Storage King presented an independent valuation to support its decision. This assessment estimated a higher value for the company based on a standalone position, excluding external acquisition premiums. The board highlighted several key elements in the calculation, such as brand strength, platform infrastructure, corporate operating structure, and development project value. These factors were collectively used to reinforce the disparity between internal valuation and the offer price.

Conditions Attached to the Offer

The offer was conditional upon obtaining certain regulatory clearances, including a ruling from the Australian Tax Office. According to the board, these stipulations introduced complications and timing concerns. The level of certainty required to finalise such a transaction was cited as lacking due to these provisions, which were deemed disproportionate to the offer's overall structure.

Continuing Market Observations

Market participants remain attentive to how the consortium, including Ki Corporation and Public Storage, may respond. While Abacus Storage King has not disclosed any formal counter-engagement, the event has triggered increased observation of its asset base and operational scale. Discussions continue across market forums as stakeholders monitor possible corporate moves or restructuring approaches involving the self-storage company.

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