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Public Storage (NYSE:PSA) made an unsolicited provide to purchase rival Life Storage (NYSE:LSI) for $11 billion in an all inventory deal.
Below the proposed transaction, holders of Life Storage (LSI) would obtain 0.4192 shares of Public Storage (PSA) of widespread inventory for every Life Storage share or unit they personal, or $129 a share, representing a 17% premium to Life Storage’s closing worth on Friday
“We now have been dissatisfied that Life Storage’s board has refused to have interaction constructively with us,” Joe Russell, Public Storage’s President and Chief Government Officer stated in an announcement on Sunday. ” Life Storage explicitly wrote on December 29, 2022 that Life Storage is ‘not on the market,’ reaffirmed that stance in a January 31, 2023 letter with out providing any avenue for additional dialogue, and has been unresponsive to our outreach.”
Life Storage (LSI) confirmed in a press launch that it acquired an unsolicited taxable all-stock proposal from Public Storage (PSA) and that it’ll evaluate the proposal, although the corporate famous that he propsal acquired Sunday seems to be “considerably comparable in all materials respects” to a privately submitted proposal beforehand reviewed LSI’s board.
Public Storage has a market cap of about $54 billion, whereas Life Storage (LSI) is valued at $9.5 billion.
Goldman Sachs is serving as Public Storage’s (PSA) monetary advisor and Wachtell, Lipton, Rosen & Katz is serving as Public Storage’s authorized advisor.
Public Storage (PSA) additionally introduced Sunday that its board elevated Public Storage’s common widespread quarterly dividend by 50%, from $2.00 to $3.00 per share.
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