The National Storage REIT (ASX: NSR) share price will be on watch when trading resumes on Monday following the announcement of a takeover proposal by Public Storage (NYSE: PSA).
What does National Storage do?
National Storage REIT is a self-storage owner and operator. As one of Australia's largest self-storage providers, National Storage tailors self-storage solutions to over 60,000 residential and commercial customers at over 170 storage centres across Australia and New Zealand.
What did National Storage announce?
After market close today, National Storage announced it had received an unsolicited non-binding indicative proposal from US company Public Storage. The proposal is to acquire 100% of the issued stapled securities of National Storage for a cash price of $2.40 per stapled security, by way of inter-conditional company and trust schemes.
National Storage noted that the Public Storage indicative proposal is subject to a number of customary conditions including completion of confirmatory due diligence, obtaining necessary board and regulatory approvals, and execution of definitive legal documentation. However, the Board of National Storage notes it is not subject to a funding condition.
Public Storage's offer price will be reduced by any distribution declared by National Storage after today, excluding the already declared December 2019 distribution of $0.047 per stapled security to be paid on 28 February 2020.
The Board advises that, after careful consideration of the Public Storage indicative proposal, it has commenced discussions with Public Storage and resolved to grant Public Storage access to due diligence.
Recent announcements
Previously on 23 January 2020, National Storage announced it had received a takeover proposal from Gaw Capital Partners (GAW).
In a follow-up announcement yesterday, National Storage advised that discussions are ongoing with GAW in relation to this indicative proposal.
What now?
Today, the Board noted that the price per National Storage security offered under Public Storage's indicative proposal is superior to the price offered under GAW's proposal.
The Board further commented that there is no certainty the discussions with either GAW or Public Storage will lead to a binding proposal or a proposal it will recommend to National Storage securityholders.
As such, the Board has advised National Storage securityholders to take no action at this time in respect of their security holdings in National Storage.
