Public Storage (PSA.N), the largest U.S. operator of self-storage properties, on Sunday unveiled an $11 billion hostile bid for Life Storage Inc (LSI.N), ratcheting up attempts to buy its smaller rival after its earlier takeover attempts were rebuffed.
Under the proposed all-stock deal, Life Storage shareholders would receive 0.4192 share of Public Storage for each Life Storage share or unit, which equates to $129.3 per share based on Public Storage’s closing share price on Friday. The offer represents a premium of 19% based on the 20-day volume weighted average price of both stocks as of Friday.
Including debt, the proposed deal would value Life Storage at about $15 billion, making it one of the largest takeovers of 2023.
Glendale, California-based Public Storage said Life Storage had rejected an offer under similar terms in January, forcing the company to make its approach public. Public Storage first approached Life Storage in December.
“We have been disappointed that Life Storage’s board has refused to engage constructively with us. Life Storage explicitly wrote on December 29, 2022 that Life Storage is ‘not for sale,’ reaffirmed that stance in a January 31, 2023 letter without offering any avenue for further dialogue, and has been unresponsive to our outreach,” Public Storage said in a letter to Life Storage’s management.
Courtesy Reuters. By Krystal Hu, Anirban Sen and Jahnavi Nidumolu