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Abacus Storage rejects $1.2 Billion takeover bid

Abacus Storage Kings in Australia said that it rejected an unsolicited offer of $1.23 billion from a Ki Corporation-Public Storage consortium.

Early in April, a consortium consisting of the U.S. furniture manufacturer Ki Corporation as well as real estate investment trust Public Storage offered A$1.47 for each stapled security Abacus shareholders had purchased all shares that were not held by Ki or its subsidiaries.

Abacus' independent Board Committee rejected the proposal on Tuesday. They stated that it did not reflect a "compelling" value for their securities.

Abacus reported that despite the fact that the offer was at a premium over previous trading prices, Abacus believes the headline A$1.47 price does not reflect the fair value of an ASK security.

Abacus said that the decision could also have been influenced by tax conditions of the consortium, which require certain tax rulings to be obtained from the Australian Taxation Office. This could potentially impact transaction certainty.

(source: Reuters)