Global Self-Storage Rejects Third Acquisition Proposal from Etude Storage Partners

May 28, 2024

4 Min Read

Update 5/28/24 – The board of directors for Global Self Storage Inc. has unanimously rejected the unsolicited, non-binding and conditional acquisition proposal it received from Etude Storage Partners earlier this month. After carefully reviewing the offer, board members determined that it was inadequate and significantly undervalued Global Self Storage and its prospects for growth and value creation. Furthermore, the board decided a sale isn’t in the best interests of the company and its stockholders, according to a press release.

The board has further stated that it isn’t contemplating a company sale and will instead focus on its strategic business plan, which includes funding acquisitions, either directly or through joint ventures, and expanding projects at existing properties.

“Our board believes that Global Self Storage has significant upside potential and that we can best maximize long-term stockholder value by leveraging our extensive operational expertise in the self-storage industry; our proven track record of financial and operating performance; and our strong capital-resources position, brand and reputation for excellence by continuing to execute our strategic business plan,” Winmill said in a May 21 letter to Steven Stein, president of Etude Storage Partners.


5/9/24 – Etude Storage Partners LLC, a private investment firm and self-storage owner, has sent a letter to the board of directors of Global Self Storage Inc., a real estate investment trust, with an offer to purchase the company. It’s Etude’s third attempt to acquire Global, according to a press release.

Etude has been a stockholder of Global for more than five years. In the May 7 letter, it offers $6.15 per share in an all-cash, fully financed proposal. The initial offering of $5.52 per share in cash was issued on Feb. 15, and a second was sent on April 5 for $6.05. The Global Board of Directors rejected both and hasn’t engaged with Etude, the release stated.

“We are making our latest proposal public in the hopes of facilitating constructive discussions with the board, with the goal of entering into a mutually agreeable transaction that is in the best interests of all stockholders,” the Etude letter stated.

The proposal represents a 47% premium over the May 6 closing price of $4.17 per share and a 45% premium over the 30-day volume-weighted average price of $4.24. Etude proposes that the transaction be accomplished through a negotiated merger.

In a statement, Global’s board of directors claimed that Etude’s previous offers were inadequate and undervalued the company's current and long-term value. They also said selling wasn’t in the company’s or stockholders’ best interests.

"After careful review of Etude's previous unsolicited, non-binding and conditional acquisition proposals, it was clear to our entire board that Etude is seeking to opportunistically exploit the challenging macro-economic operating environment currently impacting the valuation of publicly traded self-storage companies and, thereby, deprive our stockholders of the value currently inherent in the company as well as the opportunity to benefit from the company's significant upside potential as we continue to execute on our strategic business plan,” said Mark C. Winmill, CEO, president and chairman of the board for Global.

The Global Board of Directors consists of a majority of independent directors, in consultation with its financial and legal advisors. It said it’ll review and consider the newest offer to determine its course of action. The company also noted that Etude's letter didn’t constitute a formal offer and, as such, stockholders don’t need to take any action.

Etude Storage Partners is a joint venture between Etude Capital and San Felipe Financing, a private real estate entity controlled by Richard D. Kinder that invests in self-storage in North American. The joint venture has a $250 million equity commitment from San Felipe.

Global acquires, manages, operates, owns and redevelops self-storage properties. Through its wholly owned subsidiaries, it owns or manages 13 self-storage properties in Connecticut, Illinois, Indiana, New York, Ohio, Pennsylvania, South Carolina, and Oklahoma.

Business Wire, Etude Storage Partners Proposes to Acquire Global Self Storage for $6.15 Per Share in Cash
Access Wire, Global Self Storage Comments on Unsolicited, Non-Binding, and Conditional Acquisition Proposal Received From Etude Storage Partners LLC
Yahoo, Global Self Storage Board of Directors Unanimously Rejects Unsolicited Acquisition Proposal from Etude Storage Partners

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