Abacus Storage King has rejected a A$1.9bn (€1.1bn) takeover offer from the US-listed Public Storage and Ki Corporation on the ground that it undervalues the business.
Ki Corporation, controlled by Nathan Kirsh, already holds an existing direct and indirect interest, totalling just under 60% of the trust. It teamed up with Public Storage to mop up all the securities that it currently does not own and plan to take the company private.
Under the proposal, Abacus Storage King securityholders would receive A$1.47 per stapled security, less any dividends or distributions declared after the date of the offer in April.
In rejecting the offer, Abacus Storage King said, based on an independent valuation review, the net tangible asset of its shares was worth A$1.73 each.
It said the indicative proposal does not reflect compelling value for the company’s securities despite being at a premium to prior trading prices.
“As a result, the IBC [independent board committee] has at this time declined to provide the consortium with due diligence materials,” said the board.
It asked securityholders not to take action in relation to the consortium’s offer.
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