The National Storage REIT (ASX: NSR) share price has come under pressure on Friday and is tumbling notably lower.
In late afternoon trade the self-storage operator's shares are down a sizeable 5% to $2.23.
Why is the National Storage share price tumbling lower?
Whilst the broad market selloff is weighing on most shares today, National Storage's shares have come under additional pressure after providing an update on recent takeover approaches.
On Thursday National Storage advised that Gaw Capital Partners has completed its non-exclusive due diligence.
However, Gaw, which had offered $2.20 per share for National Storage, advised that it was unable to make an offer of $2.40 or greater per share to match an offer made by US-storage company Public Storage earlier this month. In light of this, it has withdrawn from the process.
This morning the company revealed that Warburg Pincus, which had also offered $2.20 per share, has decided not to pursue an offer at this time. As a result, Warburg Pincus has withdrawn its indicative offer, though it has reserved its right to revisit its decision at any time.
This leaves just Public Storage as part of the process, ending speculation of a bidding war breaking out between the three parties.
According to the release, Public Storage is still in the process of conducting due diligence on National Storage.
However, management has warned that there is no certainty that discussions will lead to a final recommended offer to securityholders.
It remains committed to acting in the best interests of, and maximising value for, securityholders and has once again reiterated that securityholders should take no action at this time in respect of their securityholdings.
The company will continue to keep them appropriately informed of any developments in accordance with its continuous disclosure requirements.
