Shares in self-storage giant Abacus Storage King jump following $1.9b takeover bid

A consortium of US investors, including 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 spaces across Australia and New Zealand, making it one of the industry biggest players. It has 17 locations in WA, including in Osborne Park and Perth Airport.

It told investors on Monday it had received a conditional and non-binding proposal from Ki Corporation and Public Storage to acquire all of the outstanding 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 currently Abacus Storage King’s major shareholder, holding about a 59 per cent direct and indirect interest.

Should the acquisition take place, Ki Corporation and Public Storage would each own 50 per cent of the shares.

Abacus Storage King shares closed 20.7 per cent higher at $1.40 — one of the few market winners on Monday.

Abacus Storage King said it had formed an independent board committee consisting of its independent directors to assess the proposal, but had not formed any view on its merit at this stage.

It said the bid was subject to a number of conditions, including regulatory approvals from the Foreign Investment Review Board and the New Zealand Overseas Investment Office.

In a statement, the buyout partners said they were offering certainty, liquidity and an attractive premium to minority securityholders and were uniquely positioned to deliver compelling value and the best long-term outcome for Abacus Storage King’s employees, customers and additional stakeholders.

Public Storage said self-storage property ownership within Australia and New Zealand was highly 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 said.

Investment bank Goldman Sachs is advising the consortium, while Macquarie is acting as Abacus Storage King’s financial adviser.