Public Storage-led consortium abandons $1.4 billion pursuit for Australia's Abacus Storage

Aug 26 (Reuters) - Australia's Abacus Storage King ASK.AX said on Tuesday that a consortium led by South African billionaire Nathan Kirsh and U.S.-based Public Storage PSA.N has withdrawn its A$2.17 billion ($1.41 billion) takeover offer for the firm.

Abacus said its independent board committee was notified overnight that the consortium had withdrawn its proposal. The firm did not disclose any reason behind the consortium's withdrawal.

The deal, which was first announced in April, had the consortium offering Abacus shareholders A$1.47 per stapled security for all shares not currently held by Ki Corp and its subsidiaries.

Abacus rebuffed the offer in May, citing risks around valuation, timing and deal completion. However, the consortium sweetened their offer in July to A$1.65 per share for the Australian self-storage firm.

Furniture manufacturer Ki Corp directly and indirectly controls 59.39% of Abacus Storage.

The consortium's decision to walk away came a month after Abacus had allowed it to conduct due diligence by reviewing its financials and internal documents.

It isn't the first time that storage facilities operator PSA had retreated from a billion-dollar deal to buy a self-storage firm. In 2023, PSA had walked away from an $11 billion deal to buy self-storage properties operator Life Storage after it failed to woo its shareholders.

Shares of Abacus Group ABG.AX, the manager of Abacus Storage King fell as much as 7.3% to A$1.2, on track for their worst session since January 13.

($1 = 1.5389 Australian dollars)