Abacus Group and Abacus Storage King have commenced preliminary discussions regarding a potential internalisation of Storage King’s management functions. The two ASX-listed companies have entered early-stage talks, though there is no certainty that these discussions will lead to a transaction. Abacus Group is a diversified financial services group specialising in property and credit investments. Abacus Storage King is a leading owner and operator of self-storage facilities.
To assess any proposal that may arise from the discussions, Abacus Group has formed an independent board committee. This committee will engage with a corresponding independent committee established by Abacus Storage King. Both companies have emphasised that there is no guarantee any deal will proceed and are advising shareholders to refrain from taking any action at this stage.
Should an agreement be reached and the internalisation proceed, the boards have agreed in principle on key leadership roles. Steven Sewell would remain as managing director of Abacus Group, while Nikki Lawson would be appointed as chief executive of Abacus Storage King.
Abacus Group has stated it will keep the market informed of any material developments in accordance with its continuous disclosure obligations. The independent board committee has appointed Morgan Stanley Australia as its financial advisor and Allens as its legal advisor.
