Ki and Public Storage Launch Revised Proposal for Abacus Storage King

Background to the Proposal

Abacus Storage King (ASK), a key player in the Australian real estate investment trust sector specialising in storage facilities, has entered a critical phase in its corporate journey. On 21 July 2025, ASK announced it has received a revised non-binding indicative proposal from a consortium comprising Ki Corporation Limited and Public Storage, a major US-listed storage operator. This proposal aims to acquire all outstanding stapled securities in ASK not already held by Ki or its subsidiaries.

Due Diligence and Board Committee Actions

The ASK independent board committee (IBC) has responded by granting the consortium a six-week due diligence window starting immediately. This period will allow the consortium to thoroughly assess ASK’s operations, financials, and strategic position to determine whether a binding offer can be formulated. The IBC’s role is pivotal here, as it must ensure any proposal is in the best interests of securityholders before making a recommendation.

Uncertainty and Securityholder Guidance

Despite the progress, the announcement is clear that there is no guarantee the parties will reach an agreement or that any conditions attached to the proposal will be met or waived. This leaves ASK securityholders in a holding pattern, with the IBC advising them to take no action at this stage. The non-binding nature of the proposal means the situation remains fluid and subject to change.

Implications for the Market and ASK’s Future

The involvement of Public Storage, a global leader in the self-storage industry, alongside Ki Corporation, signals a potentially transformative move for ASK. Should a binding proposal emerge and be accepted, it could reshape the ownership and strategic direction of ASK, possibly unlocking new growth avenues or operational synergies. However, the complexity of the scheme of arrangement process and regulatory approvals means investors should temper expectations until more concrete developments arise.

Looking Ahead

As the due diligence period unfolds, market participants will be watching closely for updates on the consortium’s findings and any subsequent binding offer. The coming weeks will be critical in determining whether this revised proposal progresses beyond an indicative stage to a definitive transaction that could redefine ASK’s market position.