ASK - Abacus Storage King

divs4ever said:

yes , unless they make a strategic error like expanding too quickly or expanding in the wrong areas ( and that is always a risk )

having been a customer of a different storage company for a fair while back about 2000 i got to understand who uses self-storage .. this site had two bands that used their shed as storage AND a practice venue , some small businesses stored inventory ( and back up records ), then there are hobbyist/collectors and those moving between residences ) and that is just what i noticed accessing my lockup

i think self-storage has a better future than lesser positioned office space or smaller retail shopping strips/malls

BUT they are NOT a large part of my portfolio ( so far )

and despite my willingness to hold long term ( unless ABG blocks it with their 20% holding and a few loyalists like me ) i think the deal will go through

BTW you would be amazed how many businesses can't make a taxable profit in the first 5 years

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Ah right, that makes sense. Your right about businesses not making a profit in 5 years, though I thought they've been around since 1996?

finicky said:

Are you referring to HY24 when property devaluations ate up all NPAT? That isn't the case for HY25 and guidance for the full year is a profit. They were still able to pay a normal looking distribution too in HY24 since the devaluations were non-cash.

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Oh sorry my mistake, I completely misread that page there. Yeah you're right, they made a profit for HY24. I'm seeing this on HY25

RbNEO said:

Ah right, that makes sense. Your right about businesses not making a profit in 5 years, though I thought they've been around since 1996?

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but not under Abacus leadership , one of the joys in acquisitions is all the tax write-offs , goodwill , synergy costs , revaluations of assets ( because they are old and needing upgrades/maintenance

so Abacus bought them , then demerged them that looks like two acquisitions/new businesses to the tax accountants

is it fair , well ATO thinks it is all legit

Good on em; I was expecting them to take the money and run.



Also:
"The tax condition, in its proposed form, adds completion and timing risk • The Consortium requires certain tax rulings from the ATO to be obtained as a condition precedent to completion of any transaction. The requested tax conditions add timing risk and completion risk to the Consortium’s Indicative Proposal. • The acquisition price and terms offered are insufficient to compensate for this risk."

Held
Holding

REVISED NON-BINDING INDICATIVE PROPOSAL

Abacus Storage King (ASX:ASK) (‘ASK’) refers to its announcements on 7 April 2025, 16April 2025 and 13 May 2025 in relation to the conditional and non-binding indicative proposal from Ki Corporation Limited (‘Ki’) and Public Storage (NYSESA) (together the ‘Consortium’)to acquire all of the outstanding stapled securities in ASK not already held by Ki or its subsidiaries,by way of inter-conditional scheme of arrangement of Abacus Storage Operations Limited(‘ASOL’) and trust scheme of Abacus Storage Property Trust (‘ASPT’).ASK has received a revised non-binding and indicative proposal (‘Revised Proposal’) from the Consortium.

Under the terms of the Revised Proposal, ASK security holders would receive cash of A$1.65 per stapled security, which would not be subject to a deduction for ordinary course distributions declared by ASK.
The Revised Proposal represents a circa 15%1 increase on initial proposal.

The Revised Proposal remains subject to a number of conditions, as disclosed previously. This includes regulatory approvals from FIRB and the New Zealand Overseas Investment Office and receipt by the Consortium of certain tax rulings.

The ASK independent board committee (‘IBC’) has considered the Revised Proposal together with its advisers, and intends to provide a six-week period of due diligence to the Consortium to determine whether a binding proposal can be developed that is capable of being recommended to security holders and implemented.

Access to due diligence is subject to the parties agreeing appropriate non-disclosure and standstill arrangements.

At present there is no certainty that the parties will be able to agree terms to implement the Revised Proposal or that, even if terms are agreed, the conditions to the Revised Proposal will be satisfied or waived.

Accordingly, the IBC advises that ASK security holders should TAKE NO ACTION in relation to the Consortium’s Revised Proposal at this time.


i hold ASK

NOTICE OF WITHDRAWAL OF NON-BINDING INDICATIVE PROPOSAL

i hold ASK

i will probably regret it later , but am currently happy the bidders walked away ( i after exposure to the REIT niche )

divs4ever said:

but am currently happy the bidders walked away

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Goody - me too

Held
Holding