Life Storage gains, Extra Space slides after $12 bln merger

Life Storage

03/04/2023 14:51

(Updates to market open)
    ** Life Storage Inc's  LSI.N  shares up 2.5% at $134.43,
highest since late Aug, early Mon as co to combine with larger
rival Extra Space Storage Inc  EXR.N 
    ** EXR's shares down 6.2% at $152.90 and biggest losers in
S&P 500  .SPX  in early trade
    ** LSI to receive 0.8950 of an EXR share for each share they
own, or $145.82, in $12.4 bln deal that will result in combined
co becoming largest U.S. self-storage space operator by store
count
    ** Offer price represents 11.2% premium to LSI's close on
Fri, giving co ~$11.2 bln market value
    ** EXR had $22 bln market value as of Fri
    ** At deal closing, EXR and LSI shareholders expected to own
approximately 65% and 35% of combined firm, respectively
    ** LSI's shares closed at $123.88 on Mar 21, a day before
Bloomberg News reported EXR was weighing an offer for the co
    ** LSI's shares closed at $110.58 on Feb 3, just before
Public Storage  PSA.N  made its $11 bln takeover bid
    ** PSA's shares up 2.8% for 4th straight session to $310.45
and top performer in S&P 500 Real Estate index  .SPLRCR  on Mon.
Co had ~$53 bln market cap through Fri

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))