Abacus Group (ASX:ABG) Receives Acquisition Proposal for ASK
Indicative Proposal Details
Abacus Group (ASX:ABG) has received a non-binding indicative proposal from Ki Corporation Limited and Public Storage (NYSE:PSA) to acquire all outstanding stapled securities in Abacus Storage King (ASX:ASK) not already held by Ki or its subsidiaries. The proposal aims to implement the acquisition through a scheme of arrangement and trust scheme.
Financial Terms
Under the terms of the proposal, ASK securityholders would receive A$1.47 per stapled security, less any dividends or distributions declared after the proposal date. Post-implementation, Public Storage is expected to hold approximately 50% of ASK’s securities, with Ki holding the remaining balance.
Conditions and Approvals
The Indicative Proposal is subject to approvals from Ki’s and Public Storage’s boards, completion of satisfactory due diligence, and regulatory approvals from FIRB and the New Zealand Overseas Investment Office. Additionally, a binding ruling from the Australian Tax Office is required to confirm ASK qualifies as a Managed Investment Trust. A unanimous ASK Board recommendation and no material adverse changes are also stipulated conditions.
Next Steps
ASK has formed an independent board committee to assess the proposal and has appointed King & Wood Mallesons as its legal adviser and Macquarie Capital (Australia) Limited as its financial adviser. ASK will provide further updates to the market as appropriate.
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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