Safestore to IPO at 240p per share

 
 
 

Safestore today announces that the offer price for its initial public offering (the “Global Offer”) has been set at 240 pence per ordinary share, implying a market capitalisation of approximately £449 million and an enterprise value of £661 million.

Safestore is the largest self storage provider in the UK and the central Paris region and the second largest in the EU, in terms of number of stores, providing individual, secure self storage space and related services.

The Global Offer comprises 72,373,192 existing ordinary shares and 14,583,333 new ordinary shares (excluding any exercise of the over-allotment arrangement), which represents in aggregate approximately 46.5% of the Company's issued ordinary share capital and a total offer size of £208.7 million. The gross proceeds of the Global Offer to be received by Safestore from the issue of new ordinary shares are approximately £35 million.

Citigroup Global Markets U.K. Equity Limited and Merrill Lynch International, who are Joint Global Co-ordinators and Joint Bookrunners to Safestore, have been granted an over-allotment option allowing them to purchase or procure purchasers for additional ordinary shares of up to a maxiumum of 13,043,480 existing ordinary shares, representing 15% of the Shares in the Global Offer.

Conditional dealings are expected to commence on the London Stock Exchange at 8.00am today under the ticker symbol SAFE. Admission to the Official List of the Financial Services Authority and commencement of unconditional dealings is expected to take place at 08.00 UK time on 14 March 2007.

Steve Williams, Chief Executive of Safestore, said:

"We have had an excellent response to the Offer and are delighted by the number of well known institutions who have joined our shareholder register. New shareholders will participate in the next stage of Safestore's growth, as we add to the existing 4 million sq ft of space across our 99 stores primarily through new store openings and continue to benefit from the rapidly expanding self storage market both in the UK and the EU. We look forward to developing Safestore as a public company."

Summary of the Offer

Offer Price

240p

Number of Ordinary Shares in the Global Offer

 

Issued by the Company

14,583,333

Sold by selling shareholders

72,373,192

Number of existing shares subject to the over-allotment option

13,043,480

Gross proceeds receivable by the Company

£35 million

Market Capitalisation

£449 million

  • The management has retained a significant shareholding in Safestore representing approximately 10.5 per cent of the Company following Admission and have undertaken (subject to certain exceptions) not to sell their remaining holdings for at least 365 days.
  • Immediately following Admission (assuming no exercise of the over-allotment option), Bridgepoint will own a material shareholding in Safestore of approximately 41.3 per cent. of Safestore's issued share capital. If the over-allotment option is exercised in full, this shareholding will be approximately 34.6 per cent. Bridgepoint has undertaken not to sell any of its remaining shareholding for at least 180 days.
  • Citigroup Global Markets U.K. Equity Limited and Merrill Lynch International are Joint Global Co-ordinators and Joint Bookrunners for the Global Offer.
  • Citigroup Global Markets Limited is the sole sponsor.

In August 2003 Safestore was the subject of a Bridgepoint-backed £39.8 million MBO and de-listing from AIM. Since then, the business has undergone a transformation under the current management team, acquiring four businesses, the largest of which was the £210 million acquisition in June 2004 of Mentmore plc. Under Bridgepoint ownership, number of stores increased from 24 to 99 - 80 of which operate under the 'Safestore' brand in the UK and 19 of which operate under the 'Une Pièce en Plus' brand in France. In addition, revenues have increased significantly to £64.3m in 2006.

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