Abacus Storage King (ASX: ASK) has confirmed it’s received a non-binding, conditional takeover proposal from a consortium led by Ki Corporation and U.S.-based storage giant Public Storage (NYSE: PSA).
The unsolicited bid, lobbed in after market close on Friday, proposes $1.47 per stapled security, minus any future distributions, via a scheme of arrangement that would effectively privatise ASK. If the proposal proceeds, ownership of ASK would be split roughly 50/50 between Ki and Public Storage.
What’s the deal?
Ki already owns a controlling interest in ASK—about 59.4% combined, made up of 39.6% directly and 19.8% indirectly through voting power in related Abacus Group entities. This offer would see it mop up the remaining securities it doesn’t own, with Public Storage buying in alongside.
But it’s not a done deal—not even close. The offer is:
- Indicative and non-binding
- Conditional on due diligence, expected to take six weeks
- Dependent on regulatory approvals (including FIRB and New Zealand’s OIO)
- Subject to favourable tax rulings from the ATO on managed investment trust (MIT) treatment
- Contingent on unanimous board support, pending an independent expert’s view
There’s also a proposed shake-up in the works: the Consortium wants ASK to internalise its management, which is currently handled by Abacus Group (ASX: ABG).
Board response?
ASK has set up an independent board committee to assess the proposal and is being advised by Macquarie Capital and King & Wood Mallesons. At this stage, the board hasn’t taken a position and is urging securityholders to sit tight and take no action.
This development raises obvious questions around valuation, governance, and potential conflicts of interest—particularly given Ki’s significant existing stake and the links with Abacus Group.
Investors will be watching closely for whether this leads to a firm offer—or possibly sparks interest from other potential bidders.
