Abacus Storage King rallies on $2.2b takeover move
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More news: Shares in Abacus Storage King lifted in morning trade after joint suitors Ki Corporation and Public Storage tabled an improved takeover offer for the self-storage group.
Abacus shares were up 4.6% to $1.54 at 11:20am AEST, extending gains of nearly 40% since the turn of the year. The stock is still trading below the suitors' revised offer price of $1.65 per share.
Abacus Storage King receives $2.2b takeover offer, grants due diligence
The news: Self-storage operator Abacus Storage King has received an improved takeover offer from South Africa’s Ki Corporation and US-listed Public Storage, having rejected a previous bid by the joint suitors in May.
The numbers: Under the revised proposal, Abacus shareholders would receive $1.65 per share, representing a 15% jump from the initial offer of $1.47 per share.
Abacus shares last traded at $1.48.
The context: Abacus said its independent board committee intends to provide Ki and Public Storage with a six-week period of due diligence to determine whether a binding proposal can be developed.
The board rejected the previous bid in May, saying the offer price did not reflect fair value, and pointed to an independent valuation review which estimated the Abacus net tangible asset portfolio at $1.73 a share.
The source: ASX
