One of the world’s largest real estate investors is cooling on the prospect of a multibillion-pound takeover bid for Big Yellow Group, the London-listed operator of self-storage facilities.
Sky News has learnt that Blackstone is seriously contemplating abandoning its interest in a deal ahead of a December 8 deadline – imposed by the Takeover Panel – to announce a firm offer or walk away.
City sources said on Monday that Blackstone, which is said to have been working on its interest with the Canada Pension Plan Investment Board (CPPIB), had yet to make a final decision about a Big Yellow offer.
However, the self-storage company’s key executives are said to be keen to extract an offer worth at least £14-a-share.
Big Yellow shares were trading at roughly £11.54, giving the company a market capitalisation of approximately £2.3bn.
Analysts and investors had concluded that last week’s Budget statement from the chancellor, Rachel Reeves, had paved the way for Blackstone to firm up its interest and lodge a formal bid – an outcome which could still materialise, subject to further discussions.
However, a withdrawal is now said to be the likeliest outcome, according to insiders.
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Blackstone’s deliberations about a takeover come weeks after it committed to investing £100bn in the UK economy in the coming years, reflecting its position as one of the most prolific buyers of British-based companies and assets.
Among its existing UK portfolio is the NEC conference and exhibition centre, the Legoland parent company Merlin Entertainments, and IQSA, a provider of student accommodation.
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On Monday afternoon, Blackstone declined to comment, while Big Yellow has been contacted for comment.
