Storage merger war gets a little Extra

Life Storage

04/04/2023 01:07

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are her own.)
    By Jennifer Saba
       NEW YORK, April 3 (Reuters Breakingviews) - Life Storage
agreed to pair up with its rival store-it company Extra in a
$12.4 bln deal after rejecting a hostile takeover from Public
Storage. Life’s former suitor may come back claiming big
synergies. But the needed premium – and a break fee – would not
be worth the additional effort. 

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    CONTEXT NEWS 
    Life Storage said on April 3 it agreed to be acquired by
rival Extra Space Storage in a deal with a combined enterprise
value of $47 billion.
    Under the terms of the agreement, Life Storage shareholders
will receive 0.8950 of an Extra Space share for each Life
Storage share, representing approximately $145.82 per share
based on Extra Space’s close on March 31. Extra Space and Life
Storage shareholders are expected to own approximately 65% and
35% of the combined company, respectively. 
    Life Storage rejected on Feb. 5 an earlier hostile all-stock
offer of $11 billion from rival Public Storage.

 (Editing by Lauren Silva Laughlin and Thomas Shum)
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