(Bloomberg) — Public Storage unveiled an unsolicited $11 billion bid Sunday for Life Storage Inc. in a transfer aimed toward boosting profitability.

The disclosure comes weeks after Public Storage privately made a proposal to Life Storage. Beneath the proposed deal, holders of Life Storage shares and models would obtain 0.4192 share of Public Storage frequent inventory for every Life Storage share or unit they personal, in keeping with an announcement Sunday.

The deal values Life Storage at about $11 billion, or $129 a share — about 17% above its closing worth of $110.58 on Friday, in keeping with Bloomberg calculations. The Wall Road Journal reported Public Storage’s bid earlier Sunday.

Public Storage stated Life Storage wrote Dec. 29 that it wasn’t on the market and reaffirmed that in a Jan. 31 letter.

Life Storage responded in an announcement Sunday that the newest proposal seems to be “considerably related” to the sooner one reviewed by its board. However, it stated it “will rigorously evaluation the proposal and decide the plan of action that it believes is in one of the best pursuits of all shareholders.”

Dividend improve

Public Storage individually introduced on Sunday a rise of its frequent dividend to $12 a share from $8 on an annualized foundation. The bump would sweeten the all-stock supply in comparison with the personal proposal in January, which has the identical change ratio with out the dividend improve.

“We might have most well-liked to work privately with you to achieve an settlement for the advantage of our respective shareholders, however given your refusal to have interaction meaningfully, we imagine making our proposal public is now probably the most constructive method,” Public Storage Chief Govt Officer Joe Russell and Chairman Ronald Havner wrote Sunday in a letter to Life Storage’s administration.

Public Storage, primarily based in Glendale, California, has grown steadily by means of acquisitions for the reason that Nineties, with native or regional storage firms accounting for many of these offers.

Earlier acquisitions

Of these 47 transactions, the most important was the $4.6 billion buy of Shurgard Storage Facilities LLC accomplished in 2006, in keeping with information compiled by Bloomberg. Monetary phrases for many of these offers weren’t disclosed, the info present.

Shares of Buffalo, New York-based Life Storage have fallen 18% prior to now 12 months. Public Storage are down 15% throughout that interval, giving it a market worth of $54 billion. 

© 2023 Bloomberg L.P.