Natie Kirsh may rethink $1.2 billion takeover after rival stake purchase

Key Points

• Natie Kirsh’s bid for Abacus Storage King faces a setback after rival National Storage REIT acquires a 4.78% stake.
• Kirsh’s Ki Corporation and Public Storage offered A$1.47 per security, valuing Abacus Storage King at A$1.93 billion ($1.2 billion).
• Ki and Public Storage aim to split Abacus Storage King ownership 50/50 if the takeover succeeds, pending shareholder and regulatory approval.

After offering to take over Abacus Storage King, in a deal that values the company at about A$1.93 billion ($1.2 billion), Eswatini’s richest man and Africa’s oldest billionaire, Natie Kirsh, along with U.S.-based Public Storage, may now have to rethink their offer. A rival operator has bought a stake in Abacus Storage King, creating a potential roadblock to the proposed buyout.

Kirsh, Public Storage bid faces hurdle

In April, Kirsh, through his family office Ki Corporation, teamed up with Public Storage to bid for Abacus Storage King—one of the largest self-storage companies in Australia and New Zealand. Their non-binding offer aimed to acquire all outstanding stapled securities not already held by Ki or its affiliates, valuing the company at around A$1.93 billion ($1.2 billion). They offered A$1.47 per security, about $0.89 per share.

At first, the deal looked like it was on track to go through. But this week, National Storage REIT, another self-storage operator, bought a 4.78 percent stake in Abacus Storage King, a move that could complicate things. Analysts say a stake as small as 10 percent could be enough to block a takeover, and sometimes even less if the shareholder votes sway against the deal.

Abacus Storage King runs around 126 self-storage facilities, with 21 development sites and another 75 managed or licensed properties across Australia and New Zealand. It’s a major player in a sector that’s still fragmented and growing, thanks to strong population growth and rising demand for flexible storage solutions.

Natie Kirsh’s Ki, Public Storage eye equal stakes

Ki Corporation already holds a controlling 59.47 percent stake in Abacus Storage King. If the deal moves ahead, Ki and Public Storage plan to split ownership equally, with each holding about 50 percent. They say their offer gives minority shareholders certainty, cash in hand, and a meaningful premium on their investments.

For Natie Kirsh’s Ki Corporation, there’s also a clear incentive: a deal would unlock value from the investment. However, it’s still early days. The offer is subject to due diligence, regulatory approvals, and shareholder backing. There’s no guarantee the deal will go through—and negotiations could still shift the terms before anything is finalized.