Canadian Storage Partners ULC (CSP) has withdrawn its hostile bid for InStorage Real Estate Investment Trust, as the two companies have made some progress at a friendly deal instead.
CSP, a unit of the U.S.-based self-storage operator TKG-StorageMart, said it is working toward a cash deal at C$4 per unit that InStorage has said it could support. That would raise the deal to about C$98 million from about C$91 million, based on the company's 24.51 million units outstanding as of Nov. 24, according to Reuters data.
CSP launched its C$3.75-a-unit hostile bid in October, which InStorage said was a "significant" discount and urged its unitholders to reject the bid. Both companies cautioned there was no certainty that they could reach a deal but made optimistic comments about a friendly conclusion.
InStorage is the largest owner operator of self-storage facilities in Canada. For more information, visit www.instoragereit.ca.