Following the reception of an acquisition proposition, Global Self Storage, Inc. (NASDAQ: SELF) witnessed a surge in its stock on the US market, experiencing a notable uptick of 27.82%, culminating at $5.33. Global Self Storage responded to the unsolicited, non-committal, and conditional acquisition proposal received on Tuesday.
The proposal, forwarded by Etude Storage Partners LLC, aimed to procure all outstanding shares of the Company at a rate of $6.15 per share in cash. This proposition, disclosed by Etude, marks the third unsolicited, non-committal, and conditional acquisition proposal the entity has presented to Global Self Storage (SELF) within the preceding ninety days.
After much consideration, the Global Self Storage Board of Directors, working with its financial and legal advisors, came to the unanimous conclusion that all of Etude’s previous acquisition offers were inadequate and undervalued the company’s current and potential future value. Etude’s bid was first priced at $5.52 per share in cash, but it was then changed to $6.05 per share of ordinary stock.
Moreover, the Board affirmed that the continued implementation of the Company’s strategic business blueprint was paramount to safeguarding the interests of the Company and its shareholders. Following meticulous examination, the Global Self Storage Board discerned that Etude’s endeavors aimed at capitalizing opportunistically on the challenging macro-economic operational milieu currently impacting the valuation of publicly traded self-storage entities.
Consequently, this move would potentially deprive its shareholders of the inherent value within the Company and the opportunity to reap benefits from its substantial upside potential, as it persistently executes its strategic business agenda.
Adhering to its fiduciary obligations and in consultation with its advisors, the Board will prudently evaluate and contemplate Etude’s most recent acquisition proposal to determine the optimal course of action, one that serves the best interests of Global Self Storage and its shareholders. Global Self Storage underscores that Etude’s communication does not constitute a formal offer, thus obviating the need for shareholders to undertake any immediate action.
