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Highlights
Abacus Storage King rebuffs $1.47 per share offer from Ki Corporation and Public Storage, calling it undervalued.
Independent review pegs company value at $1.73 per share, strengthening Abacus's rejection stance.
Concerns over tax rulings and deal completion risks add to the company’s refusal to open due diligence.
Abacus Storage King (ASX:ASK) has firmly rejected a takeover proposal from a consortium led by Ki Corporation—associated with South African billionaire Nathan Kirsh—and NYSE-listed Public Storage, stating the $1.47 per share offer undervalues the company despite being at a premium to recent trading levels.
In a statement released Tuesday, the self-storage real estate group not only turned down the cash offer but also refused to provide access to due diligence materials, citing a lack of fairness in the consortium’s valuation.
“The offer price does not reflect the underlying value of the business,” the company said, pointing to an independent valuation review that places Abacus's standalone worth at $1.73 per share. That assessment notably excludes any portfolio premiums and is based solely on the strength and scale of the company’s operations.
Abacus emphasized that its Independent Board Committee (IBC) considered a wide range of factors when evaluating the offer, including the potential for development profits, the value of its operational platform and brand, and cost structures.
“Importantly, these valuations are undertaken on a standalone basis and do not capture any portfolio premium to reflect the scale and significance of ASK’s portfolio,” the company noted in its response.
The consortium’s proposal came in slightly under the stock’s current trading price of $1.50. The rejection also underlines the company’s belief that the strategic and intrinsic value of its assets far exceeds the offer on the table.
Adding to Abacus’s hesitation are the conditions tied to the offer, including the requirement for the company to secure certain tax rulings from the Australian Taxation Office (ATO) ahead of any deal. Abacus described this as introducing “timing risk and completion risk”





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