Freehills is advising Abacus on a proposal to merge the listed Abacus Property Group (ABP) with the unlisted Abacus Storage Fund (ASF). If approved by securityholders, the merger will take effect by way of stapling ABP and ASF securities to create a new listed A-REIT with total assets of approximately $2.1 billion.
ASF is the largest unlisted fund managed by ABP, with a $332 million portfolio of storage assets, one of Australasia’s largest storage portfolios. The merger will give ABP exposure to the ASF portfolio, while providing liquidity for ASF securityholders.
Freehills partner Justin O’Farrell led the team working with Abacus along with solicitor Laura Walsh.
‘We have done a number of staplings in recent years,’ O’Farrell said. “Stapled structures allow entities with differing income and asset profiles to maintain distribution efficiencies while operating as a single co-ordinated group. In the right circumstances (such as this) a merger by stapling is a very effective deal mechanism.’
‘Abacus has been applying a number of strategies around its funds management business in recent times and this transaction, if approved, will be another excellent and innovative solution for all involved,’ added O’Farrell.
The securityholder meetings to consider the merger will take place on 24 February 2012.
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