Activist investor Ancora Alternatives has urged FTSE 250 self-storage provider Big Yellow to consider a take-private deal, leading to a jump in the company's share price. Shares in Big Yellow rose by more than five per cent to 844p today.
Ohio-based Ancora Alternatives, which holds a four per cent stake in Big Yellow, stated that the UK's largest self-storage provider is "full of trapped value." The investment firm claims Big Yellow is trading at a 39 per cent discount to its asset value, despite possessing a "highly resilient business model."
Ancora suggested that a sale of the London-listed firm would be the "best risk-adjusted outcome for shareholders," citing potential buyers interested in Big Yellow's "premium London-based portfolio." The firm operates 113 sites across the UK, with properties concentrated in prime London and South East locations.
Big Yellow previously held sales discussions with Blackstone last year, which were terminated after an offer was submitted. The company's profit before tax slipped by 38 per cent to £126m in the year to March, despite a two per cent revenue increase to £209m.