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National Storage share price charges higher on takeover speculation

The National Storage REIT (ASX: NSR) share price has been on form again on Thursday.

At one stage today the self-storage provider’s shares were up 5% to $2.28.

When National Storage’s shares hit that level, it meant they had gained a whopping 24% since the start of 2020.

What is National Storage?

National Storage is one of the largest self-storage providers in the Australia and New Zealand market with 168 centres.

From these centres the company provides tailored storage solutions to over 60,000 residential and commercial customers.

Why is the National Storage share price charging higher today?

Investors have been buying the company’s shares after further speculation that it is about to be taken over by a private equity firm.

According to the AFR, sources have said that China-based GAW Capital Partners is about to table a firm takeover proposal, with a scheme of implementation agreement close to being signed. This follows confirmation by National Storage last month that it received a confidential non-binding indicative proposal from the firm.

The media outlet also notes that trading volumes in National Storage were unusually high on Wednesday. This could point to other potential takeover parties circling the REIT.

The company was quick to respond to this latest speculation, advising that discussions are ongoing with GAW Capital Partners in relation to its indicative proposal.

Once again, no pricing terms have been revealed and management has warned that there is no certainty that the discussions will lead to a binding proposal or a proposal that the board will recommend to securityholders.

The company intends to update the market as necessary in accordance with its continuous disclosure requirements.

Other takeover news.

In other takeover news, fuel retailer Caltex Australia Limited (ASX: CTX) revealed that it has received a revised offer from Alimentation Couche-Tard.

Alimentation Couche-Tard has made a conditional, non-binding, and indicative proposal with a cash price of $35.25 per share, less any dividends declared or paid by Caltex.

Caltex management cautioned the market, however, that the revised proposal is subject to various conditions and said there is no certainty it will result in a change of control transaction.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended National Storage REIT. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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