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(Alliance News) - Lok'n Store Group PLC on Thursday accepted a takeover approach from Shurgard Self Storage Ltd that values the business at GBP378 million.
The cash bid is worth 1,110 pence per Lok'n Store share, a 16% premium to the closing price of 958p on Wednesday, and 2.3% above its all-time closing high of 1,085p in January 2022.
Shares in Lok'n Store, a London-headquartered self-storage provider, were up 17% to 1,125.00p in early exchanges in London on Thursday for a GBP370.1 million market capitalisation.
Brussels-based Shurgard, the largest developer, owner and operator of self-storage facilities in Europe, said the deal represented an "attractive opportunity" to accelerate its growth strategy and create value for shareholders.
Lok'n Store said it considered the terms of the offer "fair and reasonable", and recommended shareholders accept the bid. Shurgard said that, as of Wednesday, it has received irrevocable undertakings to vote in favour of the deal for about 19% of Lok'nStore's shares.
The deal is expected to be effected by means of a court-sanctioned scheme of arrangement and is likely to complete in July.
Lok'n Store Chair Andrew Jacobs said: "Lok'nStore's board believes the offer represents significant value for Lok'nStore's shareholders, recognising the quality of Lok'nStore's real estate portfolio and operational strength."
He added: "We believe that integrating Lok'nStore's assets and operations into Shurgard is highly complementary considering Lok'nStore's asset locations and positioning in its markets."
By Jeremy Cutler, Alliance News reporter
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