Public Storage Proposes To Buy Life Storage In All-Stock Transaction

(RTTNews) - In a letter dated on February 5, 2023 to Life Storage, Public Storage (PSA) said it reiterated its proposal to acquire all of the outstanding shares and units of Life Storage Inc. (LSI) in an all-stock transaction.

As per the terms of the proposal, first made privately to Life Storage in a January 12, 2023 letter, holders of Life Storage shares and units would receive 0.4192 shares of Public Storage common stock for each Life Storage share or unit they own.

The offer represents a 19% premium based on the 20-day trailing VWAPs of Public Storage and Life Storage as of February 3, 2023.

Public Storage said it is making the letter public in light of Life Storage's refusal to engage in any meaningful dialogue, including Life Storage's declaration in writing on December 29, 2022 that Life Storage "is not for sale."

Public Storage said Sunday that it believes Life Storage's persistent unwillingness to engage in discussions regarding the highly beneficial transaction is contrary to the interests of Life Storage's shareholders.

Public Storage said, "We would have preferred to work privately with you to reach an agreement for the benefit of our respective shareholders, but given your refusal to engage meaningfully, we believe making our proposal public is now the most constructive approach."

In a separate press release, Public Storage announced that its Board of Trustees declared a 50% increase in the company's regular common quarterly dividend from $2.00 to $3.00 per share. The distribution equates to an annualized increase to the company's regular common dividend from $8.00 to $12.00 per share.

The Board also declared dividends with respect to the company's various series of preferred shares.

All the dividends are payable on March 30, 2023 to shareholders of record as of March 15, 2023.