Public Storage Takes Aim at Rival Life Storage with Unsolicited Stock Offer
Public Storage, owner, acquirer, developer and operator of self-storage properties, has taken things “public” after sending a letter to Life Storage’s Mark G. Barberio, Chairman, and Joseph V. Saffire, CEO on February 5, 2023, reiterating its offer to acquire all outstanding shares and units of Life Storage in an all-stock deal.
First made privately to Life Storage in a letter sent on January 12, 2023, Life Storage shareholders would receive 0.4192 shares of Glendale, CA-based Public Storage for each share or unit, equating to $129.30 per share based on Public Storage’s closing share price last Friday, a 19% premium.
The Buffalo, NY-based Life Storage rejected a similar offer last month, stating that the company was “not for sale” and the deal was not in the best interest of shareholders.
In response, Public Storage released a letter to Life Storage’s management, making their proposed transaction public and giving shareholders the opportunity to make their views known.
“Our compelling offer to Life Storage shareholders includes a substantial immediate equity premium, a turbo-charged share of the combined company, and the opportunity to participate in the upside we intend to create together,” said Joe Russell, Public Storage’s President and Chief Executive Officer.
“We have been disappointed that Life Storage’s board has refused to engage constructively with us,” he added.
Goldman Sachs & Co. LLC is serving as Public Storage’s financial advisor and Wachtell, Lipton, Rosen & Katz is serving as Public Storage’s legal advisor.