Brief: Shurgard Announces Cash Acquisition Of Lok’N Store Group

Shurgard Self Storage

11/04/2024 07:22

April 11 (Reuters) - Shurgard Self Storage Ltd
 SHUR.BR :
    * SHURGARD ANNOUNCES CASH ACQUISITION OF LOK’N STORE GROUP
PLC
    * ACQUISITION OF LOK’NSTORE DOUBLES SIZE OF SHURGARD IN UK
FROM 48
STORES TO 100 STORES
    * LOK’NSTORE SHAREHOLDERS WILL BE ENTITLED TO RECEIVE FOR
EACH
LOK’NSTORE SHARE: 1,110 PENCE IN CASH
    * EXPECTED TO COMPLETE IN JULY 2024
    * TRANSACTION TO BE EXECUTED VIA SCHEME OF ARRANGEMENT: 16%
PREMIUM TO SPOT (AS AT APRIL 10, 2024)
    * TRANSACTION TO BE EXECUTED VIA SCHEME OF ARRANGEMENT:
32%/37%
PREMIUM TO 1M/3M VWAP
    * ACQUISITION VALUE THE ENTIRE ISSUED AND TO BE ISSUED SHARE
CAPITAL OF LOK’NSTORE AT APPROXIMATELY GBP 378 MLN
    * ACCRETION ON SHURGARD ADJUSTED EPRA EARNINGS PER SHARE:
MID-SINGLE DIGIT DILUTIVE IN 2024, NEUTRAL IN 2025 AND ACCRETIVE
FROM 2026 ONWARDS
    * SHURGARD AIMS TO FINANCE LOK’NSTORE AND SHURGARD’S FUTURE
DEVELOPMENT PIPELINE WITH A MIX OF DEBT AND EQUITY
    * TOTAL ESTIMATED OPERATING, G&A AND TAX SYNERGIES OF AROUND
EUR
4-5 MLN IN FIRST FULL YEAR, WITH INCREMENTAL TAX SAVINGS
    * TARGET TO KEEP LTV AT C. 25% AND, 4.0X TO 5.0X NET DEBT/
UNDERLYING EBITDA, WITH A SHORT-TO MEDIUM-TERM MAXIMUM OF 35%
LTV OR ABOVE 5.0X NET DEBT/UNDERLYING EBITDA
    * TOTAL ALL IN COST EUR 613 MLN

Source text: tinyurl.com/4e6ep3a5
Further company coverage:  SHUR.BR 

 (Gdansk Newsroom)
 ((gdansk.newsroom@thomsonreuters.com; +48587696600;))