Australia's Abacus Storage King Sees $1.43B Sweetened Bid, Shares Soar

By Roshan Thomas

()- Australian self-storage firm Abacus Storage King announced on Monday that it has accepted a revised bid worth A$2.17 billion ($1.43 billion) from a group consisting of Ki Corp and Public Storage, causing its stock price to rise over 7%.

The updated offering price of $1.65 per share reflects an increase of 11.9% compared to the stock’s closing value. The previous proposal of $1.47 per share, announced in mid-May, estimated the company's worth at $1.93 billion.

The shares of the Sydney-based firm rose up to 7.1% to A$1.580, reaching their peak since June 23, whereas the overall standard index remained mostly stable, according to data at 0130 GMT.

The independent board committee of Abacus Storage stated it would provide the consortium with six weeks to conduct due diligence to determine whether a binding agreement could be reached.

The group includes the family office of South African millionaire Nathan Kirsh, known as Ki Corp, along with Public Storage, which is listed in the United States.

"An additional updated proposal exceeding net tangible assets per share might be required to persuade small investors to support the transaction," analysts from Citi stated in a report.

Net tangible assets refer to the worth of a firm's concrete assets after subtracting its obligations.

"The likelihood of the parties reaching an agreement to execute the updated plan remains uncertain," stated Abacus in a press release.

(1 USD = 1.5223 Australian Dollars)

(Covered by Roshan Thomas in Bangalore; edited by Sandra Maler, Jamie Freed, and Subhranshu Sahu)

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