The Australian share market may be deep in the red on Monday, but not every ASX 300 stock is joining the market selloff.
In fact, Abacus Storage King (ASX: ASK) shares are rocketing higher today after the self-storage company received a big takeover offer after the market close on Friday.
At the time of writing, the ASX 300 stock is up 15% to $1.33.
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ASX 300 stock receives takeover offer
According to the release, the company has received a conditional, non-binding indicative proposal from a consortium made up of Ki Corporation Limited and NYSE-listed self-storage giant Public Storage (NYSE: PSA).
The two parties are looking to acquire all outstanding securities of Abacus Storage King that they don't already own in a deal that would see investors receive $1.47 per share, less any declared distributions.
This bid represents a 27% premium to the ASX 300 stock's recent trading levels and has come at just the right time for investors, with most of the ASX is being dragged lower amid the global market meltdown.
If completed, Public Storage would end up owning roughly 50% of the company, with Ki taking the remaining half. But investors should be aware — while it is a big move, it is certainly not a done deal yet.
Conditions
The release notes that the proposal is highly conditional, with a long list of approvals still required.
These include regulatory approvals from FIRB and New Zealand's Overseas Investment Office, tax rulings from the ATO, and a six-week due diligence period before definitive transaction documents would be signed.
In addition, the ASX 300 stock's board must unanimously recommend the offer, which they haven't done yet. An independent expert will also need to confirm that the deal is in the best interests of minority shareholders.
For now, the company's board has formed a committee of independent directors to assess the proposal and has urged shareholders not to take any action just yet while it works through the details. It said:
ASK has formed an independent board committee consisting of ASK's independent directors and it has commenced an assessment of the Indicative Proposal but has not at this stage formed any view on its merits.
Still, in a sea of red, Abacus Storage King is shining bright on Monday — and for good reason. This potential deal highlights the appeal of real asset owners with strong cash flows, even amid broader market uncertainty.
