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Big Yellow Group confirmed discussions with a few parties to explore strategic options, including a potential sale, though no formal offer has been made. This follows reports that Blackstone is assessing a possible cash bid, sending shares up 22% to 1,176 pence, their highest since late 2024, valuing the company at GBP 2.31 billion (USD 3.05 billion). Operating 111 storage facilities across the UK, Big Yellow has attracted attention due to relatively low valuations. Analysts note US REITs and private investors could also consider acquiring the firm.
Big Yellow Group, the UK-based self-storage company, has confirmed that it recently held discussions with a limited number of parties to explore strategic options, including a potential sale. The company emphasized that it has not received any formal approach and is not currently engaged in negotiations regarding a sale. Advertisement
This comes after reports that Blackstone, the US private equity firm, is in the early stages of evaluating a possible cash offer for Big Yellow. The London-listed firm saw its shares surge by up to 22%, reaching 1,176 pence, marking their highest level since November 2024. This increase values the company at around 2.31 billion pounds (USD 3.05 billion).
Big Yellow operates approximately 111 storage facilities across London and the UK. Analysts note that the company has become a notable takeover target due to relatively attractive valuations in the UK self-storage market. Blackstone's European arm described its review as preliminary, highlighting that macroeconomic considerations, such as the potential impact of the UK budget next month, are part of its assessment of the sector.
Over the past year, Big Yellow shares had dropped roughly 21%, making the recent gains their largest one-day percentage increase in the company's history. Blackstone reportedly has until early November to decide whether to submit a firm offer or abandon the pursuit.
Market analysts from Peel Hunt commented that UK-listed peers like Safestore and Shurgard are unlikely to make bids due to overlapping operations, but US-based REITs, including Extra Space Storage and CubeSmart, along with private investment groups, may express interest in acquiring the company.
Source Reuters
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