Public Storage-led Consortium Drops Abacus Storage King Proposal

Abacus Storage King has reported that a A$2.17 billion ($1.41 billion) takeover bid led by South African billionaire Nathan Kirsh and U.S. self-storage giant Public Storage has been dropped.

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The company’s independent board committee was told overnight that the consortium had pulled the proposal, though no reason was given for the decision.

The bid was first announced back in April, with the group offering Abacus shareholders A$1.47 per stapled security for shares not owned by Ki Corp and its subsidiaries. Abacus rejected that offer in May, pointing to concerns about valuation, timing, and deal completion. In July, the consortium came back with a higher offer of A$1.65 per share.

Ki Corp, a furniture maker, controls about 59.39% of Abacus Storage both directly and indirectly.

The consortium’s decision to walk away comes about a month after Abacus had given it access to review financials and internal documents.

This isn’t the first time Public Storage has stepped back from a big deal. In 2023, the company abandoned an $11 billion move to buy Life Storage after failing to win over that firm’s shareholders.

Shares of Abacus Group (ABG.AX), which manages Abacus Storage King, dropped as much as 7.3% to A$1.20 on Tuesday — their sharpest fall since January 13.