Life Storage gains on over $12 bln Extra Space deal

Life Storage

03/04/2023 12:10

(Updates)
    ** Life Storage Inc's  LSI.N  shares up 2.7% at $134.68,
over 7-month high, in light premarket volume as co to merge with
larger rival Extra Space Storage Inc  EXR.N 
    ** LSI shareholders to receive 0.8950 of an EXR share for
each share they own, or $145.82, in $12.4 bln deal
    ** Offer price is 11.2% above LSI's close price on Fri,
which values co at ~$11.2 bln, per Refinitiv
    ** EXR has $22 bln market cap as of Fri
    ** At 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 $11 bln hostile bid, which LSI
ultimately rejected 
    ** PSA has market value of ~$53 bln

 (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))