Public Storage said it sent a letter to Life Storage’s management on Sunday detailing its all-stock proposal, worth about $129 a share, confirming an earlier report by The Wall Street Journal. Life Storage shares closed Friday at $110.58.
The deal would have a so-called enterprise value, which includes net debt, of roughly $15 billion and mark one of the largest corporate takeovers so far in 2023. (Newcrest Mining Ltd. NCMGY 12.36%increase; green up pointing triangle said Sunday in the U.S. that it received a takeover proposal valuing the Australian gold miner at about $17 billion. It earlier rejected another proposal from the bidder, Newmont Corp.)
The deal would also help consolidate the fragmented storage market. Public Storage has said it owned roughly 9% of the self-storage square footage in the U.S. as of Dec. 31, 2021, making it the largest operator in the country. Collectively, it said the five largest self-storage owners in the U.S. owned about 19% of space, with the remaining 81% held by regional and local operators.Public Storage Bids for Rival in Unsolicited $11 Billion Offer – WSJ