The Sydney-based Abacus Group (ABG) has sold its entire 19.6% stake in Storage King Group in a block trade for A$284.8m (€177m) to major shareholder, Ki Corporation.
Following the sale, Abacus has returned to being a pure play office owner.
Ki Corporation, owned by the South African and Eswatini billionaire Nathan Kirsh, will now have a 40% holding in Storage King, giving it majority control of the national storage business. Together with the New York Stock Exchange-listed self-storage specialist Public Storage, Ki Corporation made a failed attempt last year to take over ABG in a A$2.2bn bid.
Abacus, which is capitalised at A$1.4bn, said Ki Corporation paid an average price of A$1.11 per security for its SKG holding.
“Following the internalisation, ABG’s SKG investment was no longer considered core to the group’s long-term strategy. Consequently, ABG has been evaluating pathways to divest the holding.
“This transaction has been structured to realise maximum value by combining a strategic sale to Ki Corporation at a premium to market with an underwritten institutional block trade, enabling ABG to efficiently exit its position in the current market,” said Abacus in a filing to the ASX.
It said the selldown marked the next step in the Abacus evolution. It has simplified its operating model; strengthened its capital position to concentrate on growing its core commercial portfolio.
“This transaction positions ABG to execute on its business priorities as a specialised Commercial REIT with a focus on investments in the Sydney and Brisbane Office markets,” Abacus added.
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