Australia’s Abacus Storage King said on Tuesday it had rejected an unsolicited takeover offer from a consortium of Ki Corporation and Public Storage , which valued the firm at A$1.93 billion ($1.23 billion).
In early April, a consortium of U.S.-based furniture manufacturer Ki Corporation and real estate investment trust Public Storage had offered A$1.47 per stapled security to Abacus shareholders for all shares not currently held by Ki and its subsidiaries.
On Tuesday, Abacus’ independent board committee turned down the proposal, stating that it does not reflect “compelling value” for its securities.
Despite the offer being at a premium to prior trading prices, the committee believes the headline price of A$1.47 does not reflect fair value for an ASK security, Abacus said.
Abacus added that the decision was also influenced by the consortium’s tax conditions, which requires certain tax rulings from the Australian Taxation Office to be obtained, and could have potentially impacted transaction certainty.
($1 = 1.5686 Australian dollars)
Reuters
