Public Storage proposes to acquire Life Storage in all-stock transaction

PSA, LSI Public Storage (PSA) sent a letter to Mark G. Barberio, Life Storage’s (LSI) Chairman, and Joseph V. Saffire, Life Storage’s CEO, with respect to its proposal to acquire all of the outstanding shares and units of Life Storage in an all-stock transaction. Under the terms of the proposal 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, which represents a 19% premium based on the 20-day trailing VWAPs of Public Storage and Life Storage as of February 3, 2023. The proposed transaction would be structured to be taxable to Life Storage equityholders, which would give the combined company a step-up in the tax basis of the acquired assets, providing an enhanced ability to retain free cash flow and fund future accretive growth. Public Storage’s Board of Trustees has unanimously approved the proposal. As detailed in Public Storage’s January 12, 2023 letter, Public Storage believes a combination of the two companies will result in immediate benefits to Life Storage shareholders, and will unlock superior near-, medium- and long-term growth and value creation opportunities. Public Storage also today announced that its Board of Trustees has increased Public Storage’s regular common quarterly dividend by 50%, from $2.00 to $3.00 per share.