Abacus Storage King Receives A$2.2B Buyout Proposal from Ki and Public Storage

Abacus Storage King (ASX:ASK) has granted a six-week due diligence period to a consortium led by Ki Corporation and U.S.-based self-storage giant Public Storage (NYSE:PSA) following their revised acquisition proposal valued at A$2.2 billion (approximately $1.4 billion USD).

The consortium aims to acquire all remaining stapled securities not already held by Ki or its affiliates, offering A$1.65 per security. The offer, revealed on July 14, marks an updated bid and follows initial takeover discussions earlier this year.

While the offer represents a premium over Abacus Storage King’s recent trading price, the company stressed that the proposal is still non-binding and subject to ongoing negotiations. Finalization depends on a scheme of arrangement and trust scheme, requiring mutual agreement and regulatory approval.

The deal, if successful, would consolidate ownership under Ki and Public Storage, one of the largest self-storage operators globally. The acquisition attempt signals increasing international interest in Australia's growing self-storage market, driven by urbanization, e-commerce, and lifestyle shifts.

Abacus Storage has not yet committed to recommending the offer and continues to explore its options while allowing the consortium to conduct exclusive due diligence. Investors are closely monitoring developments as the deal could significantly reshape the Australian storage sector’s competitive landscape.

The proposed transaction aligns with Public Storage’s expansion strategy and Ki’s investment ambitions, highlighting confidence in the sector’s long-term fundamentals.

Market analysts suggest that if terms are agreed, the takeover could complete by the end of 2024, pending approval from shareholders and regulators. Until then, ASK remains in exclusive talks with the consortium under the agreed six-week timeline.

This potential acquisition is one of the largest in the Australian REIT space this year, underlining strong cross-border interest in resilient asset classes like storage.