Abacus Storage King shares soar on $1.9b acquisition offer
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More news: Shares in Abacus Storage King jumped in early trade after the self-storage company received a $1.9 billion takeover offer from Ki Corporation and New York-listed Public Storage.
The company's shares were up 10.8% to $1.29 at 10:45am AEST. Shares in its parent company, Abacus Group, were down 2.8% to $1.06.
Abacus Storage King receives $1.9b takeover bid from Ki Corp, Public Storage
The news: Self-storage company Abacus Storage King (ASK) has received a takeover proposal from Ki Corporation and New York-listed Public Storage.
The numbers: Under the terms of the indicative proposal, ASK shareholders would receive $1.47 per share, valuing the company at around $1.9 billion. ASK shares last closed at $1.16 per share.
Should the acquisition take place, Ki and Public Storage would each own 50% of the shares.
Abacus Group, which currently holds a 19.77% interest in ASK and manages the company, said it is considering the proposal.
The context: ASK said the proposal would require approval from the boards of Ki and Public Storage, following completion of a six-week due diligence process, as well as unanimous ASK board approval and certain regulatory and other approvals.
