National Storage REIT receives $4b buyout offer from Brookfield, GIC Investments
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More news: National Storage REIT has received an unsolicited takeover proposal from a consortium of Brookfield Property Group and GIC Investments to acquire 100% of the shares in the self-storage provider.
Under the terms of the indicative proposal, National Storage shareholders would receive $2.86 cash per share, to be reduced by an expected interim dividend of 6 cents per share.
The offer values the company, which last traded at $2.26, at $4 billion.
The proposal follows earlier confidential offers from Brookfield and GIC, and a period of negotiation including the provision of limited due diligence.
Brookfield Property Group is the real estate arm of global asset manager Brookfield Corporation, while GIC Investments is the Australian subsidiary of Singaporean wealth fund GIC Private.
Any deal remains subject to a number of conditions, including regulatory approval from the Foreign Investment Review Board, the Australian Competition Consumer Commission and the New Zealand Overseas Investment Office.
The National Storage board said it has assessed the proposal and agreed to grant the consortium access to due diligence information to enable the suitors to table a binding offer.
The board has also agreed to provide a period of exclusivity to the consortium, ending 7 December, "unless a superior proposal is received before that time and the NSR board determines to pursue it".
National Storage REIT enters trading halt ahead of deal announcement
The news: National Storage REIT has entered a trading halt on the ASX, pending an announcement in relation to a "potential control transaction" for all the shares in the self-storage provider.
The context: The company said it will remain in a trading halt until the earlier of the announcement and the start of trading on 28 November.
