Key Points
- National Storage REIT has agreed to an A$4 billion (2.65 billion) buyout.
- The buyers are a consortium led by Brookfield Asset Management and Singapore’s GIC.
- The A$2.86 per share offer represents a 26.5% premium over the pre-offer stock price. The deal became official after the buyers completed their due diligence.
- National Storage’s board has unanimously recommended the deal to its shareholders.
Australian self-storage giant National Storage REIT has officially inked an A$4 billion ($2.65 billion) buyout deal with a group led by global investment firm Brookfield Asset Management and Singapore’s GIC.
The agreement, announced on Monday, makes official a non-binding offer the group made back in late November. The final offer price is A$2.86 cash per share, which represents a hefty 26.5% premium over the company’s stock price on November 25, before the initial proposal was announced.
After completing their due diligence and looking over the company’s financials, the consortium decided to move forward with a binding agreement to acquire the self-storage operator.
National Storage, which started in 1995, is a major player in the self-storage market, with more than 270 locations across Australia and New Zealand serving both residential and commercial customers.
The company’s board is fully behind the deal. They have unanimously recommended that shareholders vote in favor of the acquisition. However, the recommendation comes with a couple of standard conditions: no better offer emerges, and an independent expert confirms that the deal is in the best interest of the shareholders.
