Self-storage company Big Yellow Group has confirmed it is keeping "all options" under review as it faces mounting pressure from activist investor Ancora Holdings to put itself up for sale.
The London-listed firm revealed it had held talks with the shareholder who is "encouraging Big Yellow to explore a sale".
Activist investor calls for strategic review
US activist investor Ancora Holdings – which holds a 4% stake in Big Yellow – earlier this week called on the company to launch a strategic review, arguing that a sale would represent the best possible outcome for shareholders.
Big Yellow's shares have tumbled to multi-year lows, battered by a sluggish housing market and an uncertain broader economic climate. However, the stock has bounced back in recent days following Ancora's push for a sale, climbing a further 4% on Thursday.
Board response and past negotiations
Big Yellow said: "The board and management team continue to focus on executing the company's clear and proven strategy. The board is also cognisant of its fiduciary duties and continually evaluates all options for maximising shareholder value."
The firm walked away from negotiations with private equity giant Blackstone in December, after the proposed price was deemed too low. Big Yellow revealed on Thursday that it had engaged in discussions with a "small number of parties" during October, exploring various options including a potential sale, before entering into talks with a single prospective buyer.
Those negotiations ultimately collapsed as the valuation put forward "not at a level that reflected the full potential of the company".
Ancora's proposal and next steps
On Tuesday, Ancora announced its intention to "engage constructively with Big Yellow to deliver full value for shareholders". The firm is urging Big Yellow's board to consider "soliciting interest from the deep pool of likely strategic and financial acquirers globally".
It further stated: "Ancora believes that a sale of Big Yellow represents the best risk-adjusted outcome for shareholders. In addition, with shares at a five-year low, Ancora believes Big Yellow can take pragmatic value-enhancing actions such as divesting non-core assets, rebranding or selling Armadillo and monetising the property development pipeline."
