InStorage REIT Board Urges Rejection of Takeover Bid From Canadian Storage Partners
|Copyright 2014 by Virgo Publishing.|
|Posted on: 11/04/2008|
In response to an unwelcome takeover bid issued from Canadian Storage Partners ULC, a subsidiary of TKG-StorageMart Partners LP, the Board of Trustees of Canada-based InStorage Real Estate Investment Trust has unanimously recommended that unitholders reject the hostile offer. The board has determined the bid to be inadequate, stating it fails to recognize the full value of the company.
In mid-October, TKG-StorageMart made an unsolicited offer to acquire all of InStorage REIT’s outstanding trust units at $3.75 per unit through its Canadian subsidiary. The announcement came just after its acquisition of 19.5 percent of InStorage shares.
"The Board of Trustees and management of InStorage believe the Partners ULC offer is much too low,” said Lou Maroun, chairman of the InStorage Board of Trustees. “Our lead financial advisor, Brookfield Financial, has delivered its opinion that the offer is financially inadequate, and we encourage all unitholders to carefully review the Trustees' Circular and not tender their units. In addition, we continue to have discussions with a number of third-parties interested in exploring alternative transactions that may result in greater value for unitholders than this hostile offer."
On Oct. 31, a Trustees' Circular was mailed to all unitholders outlining in detail the factors considered by the board in recommending rejection of the offer. Details of the circular can be found in the InStorage website at www.instoragereit.ca.
InStorage is the largest owner-operator of self-storage facilities in Canada, with 52 self-storage properties in Alberta, Saskatchewan, Ontario and Quebec.
TKG-StorageMart has 70 facilities in the United States and Canada, including five in Columbia. The Burnam family has been involved in the self-storage industry since 1974.