Activist investor Ancora pushes Big Yellow to explore sale

By Reuters News

Oct 13 (Reuters) - Activist investor Ancora Holdings has urged Britain-listed Big Yellow Group BYG.L to launch a strategic review, including a potential sale of the self-storage company.

A sale represents the best risk-adjusted outcome for shareholders, Ancora, which has a more than 4% stake in Big Yellow, said in a presentation on Tuesday.

  • Ancora said Big Yellow shares, which have fallen 23.6% so far this year, trade at an "unwarranted" discount to net asset value

  • Big Yellow did not immediately respond to a Reuters request for comment

  • Ancora estimates Big Yellow is worth £12.36 ($16.38) per share; Its shares closed at £7.99 on Tuesday, giving the company a market value of about £1.6 billion

  • Ancora's push comes nearly a year after Big Yellow terminated discussions with Blackstone BX.N for a takeover at an undisclosed offer price

  • Ancora said on Tuesday Blackstone had offered Big Yellow 50% above the current stock price and that if the company were to solicit interest from parties now, a deal could likely occur at a valuation above what Blackstone offered

  • Blackstone did not immediately respond to a Reuters request for comment on its 2025 offer for Big Yellow

  • Big Yellow is "an attractive asset for both financial sponsors and strategic acquirers given the company's relative cheapness" compared to US storage REITs and the "scarcity value" of its UK portfolio, Ancora said

  • Ancora is among a growing number of activists pressing companies to pursue asset sales or takeovers as M&A activity rebounds and pressure mounts on boards to unlock shareholder value. It had in June urged specialty chemicals maker Ashland ASH.N to explore a sale

($1 = 0.7545 pounds)

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