IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/national-storage-reit" target="_blank" data-smartkarma-citation="entities:13762:1" rel="noopener">National Storage REIT (NSR AU)</a> has entered a SID with Brookfield and GIC at A$2.86 per unit, a 26.5% premium to the undisturbed price.</li>
<li>The scheme offer is conditional on shareholder and FIRB, NZ OIO and foreign competition (EU, Ukraine, Turkey, China, Korea) approvals.</li>
<li>Regulatory approvals should be forthcoming. The scheme vote is low risk as the offer represents an all-time high and implies a P/NTA of 1.11x. </li>
</ul>



National Storage REIT (NSR AU) has entered a SID with Brookfield and GIC at A$2.86 per unit, a 26.5% premium to the undisturbed price.
The scheme offer is conditional on shareholder and FIRB, NZ OIO and foreign competition (EU, Ukraine, Turkey, China, Korea) approvals.
Regulatory approvals should be forthcoming. The scheme vote is low risk as the offer represents an all-time high and implies a P/NTA of 1.11x. 


National Storage REIT (NSR AU): Brookfield and GIC’s Binding Proposal at A$2.86

<ul>
<li>
<a href="https://www.smartkarma.com/entities/national-storage-reit" target="_blank" data-smartkarma-citation="entities:13762:1" rel="noopener">National Storage REIT (NSR AU)</a> has received a non-binding proposal from Brookfield and GIC at A$2.86 per unit, a 26.5% premium to the undisturbed price.</li>
<li>The Board has granted exclusive due diligence until 7 December. A scheme offer would be conditional on FIRB, NZ OIO and ACCC approval. </li>
<li>The offer is attractive as it represents an all-time high and implies a P/NTA of 1.11x. The short exclusivity period increases the odds of a binding proposal.</li>
</ul>



National Storage REIT (NSR AU) has received a non-binding proposal from Brookfield and GIC at A$2.86 per unit, a 26.5% premium to the undisturbed price.
The Board has granted exclusive due diligence until 7 December. A scheme offer would be conditional on FIRB, NZ OIO and ACCC approval. 
The offer is attractive as it represents an all-time high and implies a P/NTA of 1.11x. The short exclusivity period increases the odds of a binding proposal.


National Storage REIT (NSR AU): Brookfield and GIC’s Attractive NBIO at A$2.86

<ul>
<li>The six-week due diligence for Ki Corporation and <a href="https://www.smartkarma.com/entities/public-storage" target="_blank" data-smartkarma-citation="entities:18193:1" rel="noopener">Public Storage (PSA US)</a>'s A$1.65 offer for <a href="https://www.smartkarma.com/entities/abacus-storage-king" target="_blank" data-smartkarma-citation="entities:39857:1" rel="noopener">Abacus Storage King (ASK AU)</a> ends on 1 September.</li>
<li>Some readers have asked if ASK is attractive at the current 7.5% gross spread. I think caution is warranted as there is a medium-to-high probability of no deal.</li>
<li>The probability of a binding scheme is low, as NSR will block it, and the Board requires a bump to recommend it. A takeover offer is not a credible alternative. </li>
</ul>


The six-week due diligence for Ki Corporation and Public Storage (PSA US)'s A$1.65 offer for Abacus Storage King (ASK AU) ends on 1 September.
Some readers have asked if ASK is attractive at the current 7.5% gross spread. I think caution is warranted as there is a medium-to-high probability of no deal.
The probability of a binding scheme is low, as NSR will block it, and the Board requires a bump to recommend it. A takeover offer is not a credible alternative. 


Abacus Storage King (ASK AU): Caution Is Warranted

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>On the 7th April, the Ki Corporation/<a href="https://www.smartkarma.com/entities/public-storage" target="_blank" data-smartkarma-citation="entities:18193:1" rel="noopener">Public Storage (PSA US)</a> consortium announced a NBIO, by way of a Scheme, for shares not held in <a href="https://www.smartkarma.com/entities/abacus-storage-king" target="_blank" data-smartkarma-citation="entities:39857:1" rel="noopener">Abacus Storage (ASK AU)</a> at A$1.47/security.</li>
<li>ASK rejected the Offer on the 13th May. The Kirsh-led consortium bumped non-binding terms 14.7% to A$1.65/share on the 14th July, and was granted six weeks of due diligence.</li>
<li>DD expires on or around the 1st September. Nathan Kirsh directly/indirectly holds a 59.47% stake in ASK. Currently trading at a 7.5% spread to the indicative terms. </li>
</ul>


On the 7th April, the Ki Corporation/Public Storage (PSA US) consortium announced a NBIO, by way of a Scheme, for shares not held in Abacus Storage (ASK AU) at A$1.47/security.
ASK rejected the Offer on the 13th May. The Kirsh-led consortium bumped non-binding terms 14.7% to A$1.65/share on the 14th July, and was granted six weeks of due diligence.
DD expires on or around the 1st September. Nathan Kirsh directly/indirectly holds a 59.47% stake in ASK. Currently trading at a 7.5% spread to the indicative terms. 


Abacus Storage (ASK AU): Time To Get Some Exposure?

<ul>
<li>
<a href="https://www.smartkarma.com/entities/abacus-storage-king" target="_blank" data-smartkarma-citation="entities:39857:1" rel="noopener">Abacus Storage King (ASK AU)</a> disclosed a non-binding proposal from Ki Corporation and <a href="https://www.smartkarma.com/entities/public-storage" target="_blank" data-smartkarma-citation="entities:18193:1" rel="noopener">Public Storage (PSA US)</a> at A$1.65 per unit, a 14.7% premium to its previously rejected offer.</li>
<li>The Board will grant six weeks of due diligence. While below NTA (implies P/NTA of 0.95x), the offer is reasonable compared to peer multiples and historical trading ranges.   </li>
<li>The consortium will likely need to switch to a takeover offer as <a href="https://www.smartkarma.com/entities/national-storage-reit" target="_blank" data-smartkarma-citation="entities:13762:1" rel="noopener">National Storage REIT (NSR AU)</a>, which holds effectively a blocking stake, is unlikely to vote in favour. </li>
</ul>



Abacus Storage King (ASK AU) disclosed a non-binding proposal from Ki Corporation and Public Storage (PSA US) at A$1.65 per unit, a 14.7% premium to its previously rejected offer.
The Board will grant six weeks of due diligence. While below NTA (implies P/NTA of 0.95x), the offer is reasonable compared to peer multiples and historical trading ranges.   
The consortium will likely need to switch to a takeover offer as National Storage REIT (NSR AU), which holds effectively a blocking stake, is unlikely to vote in favour. 


Abacus Storage King (ASK AU): Ki Corp/Public Storage’s Revised NBIO Faces a Daunting Challenge

Australia

Abacus Group is a diversified property investment and management company. The Company provides exposure to a portfolio of commercial office, retail, and self storage real estates. Abacus Group serves customers in Australia.

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Abacus Group (ABG AU)

National Storage REIT (NSR AU): Brookfield and GIC’s Binding Proposal at A$2.86

Regulatory approvals should be forthcoming. The scheme vote is low risk. At the last close and for an end-of-April payment, the gross/annualised...

Arun George

National Storage REIT (NSR AU): Brookfield and GIC’s Attractive NBIO at A$2.86

The offer is attractive as it represents an all-time high and implies a P/NTA of 1.11x. The short exclusivity period increases the odds of a...

Arun George

Abacus Storage King (ASK AU): Caution Is Warranted

Some readers have asked if ASK is attractive at the current 7.5% gross spread. I think caution is warranted as there is a medium-to-high...

Arun George

Abacus Storage (ASK AU): Time To Get Some Exposure?

Indicative terms are 17% above its Aug 2023 IPO price. The NTA is up 10.8%. Kirsh know this company. Gross spread of 6.7%. If you have the risk...

David Blennerhassett

Abacus Storage King (ASK AU): Ki Corp/Public Storage’s Revised NBIO Faces a Daunting Challenge

The offer is reasonable, but the consortium will likely need to switch to a takeover offer as NSR, which holds effectively a blocking stake, is...

Arun George

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