Lok N Store11 Apr 2024 12:39
LOK this morning announced a recommended cash offer of c£378m (£11.10p per share) from Shurgard who are apparently the largest self-storage operator in Europe. Based on LOK's latest available accounts to 31 July 2023, that represents c1.64x of LOK's net assets or c1.53x of LOK's adjusted net assets.
Applying the same net asset multiples to SAFE's net assets as at 31 October 2023 (c1.93bn), you'd get a current market value of between c£2.95bn and c£3.1bn or between c£13.50 and c£14 per share!
Interestingly LOK is currently trading above Shurgard's offer price which seems to suggest that the market thinks that its offer is a bit low (although how the market suddenly arrives at that conclusion when it was only valuing LOK at c£8.70 at the beginning of the week, before the rumours seem to have started to circulate, is somewhat amusing) and that a competing offer might yet emerge.