Self Storage Group

M&A Activity • Sep 20, 2023

Self Storage Group ASA and T-C Storage HoldCo AB Announces Recommended Voluntary Cash Offer at NOK 40 Per Share

Self Storage Group ASA and T-C Storage HoldCo AB Announces Recommended Voluntary Cash Offer at NOK 40 Per Share

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Oslo, 20 September 2023 - Self Storage Group ASA (the "Company", OSE: SSG) and T

-C Storage HoldCo AB (the "Offeror"), an indirect subsidiary of Teachers

Insurance and Annuity Association Inc ("TIAA"), advised by Nuveen Asset

Management Europe S.à.r.l. ("Nuveen"), announces today that they have reached an

agreement whereby the Offeror, subject to certain terms and conditions, will

launch a recommended voluntary cash tender offer (the "Offer") for 100% of the

shares (the "Shares") of the Company.

A cash consideration of NOK 40 (the "Offer Price") will be offered per Share,

which implies a total consideration for all the Shares of approximately NOK

3,787 million (based on 94,678,584 shares outstanding as per 19 September 2023).

The Offer Price represents a premium of 66.7% over the closing price of the

Shares on 19 September 2023 of NOK 24.0 and a premium of 65.1% over the average

volume weighted share price adjusted for dividend during the last six months up

to and including 19 September 2023 of NOK 24.2.

The Company's board of directors unanimously recommends the Offer. Shareholders

representing a total of 70.51% of the outstanding Shares have on certain terms

and conditions undertaken to accept the Offer, including the Company's largest

shareholders Alta Lux Holdco S.à r.l., a company affiliated with Centerbridge

Partners, Fabian Holding AS, GSS Invest AS and First Risk Capital AS.

Key Terms of the Offer

The Company's shareholders will be offered NOK 40 per Share in cash

consideration which implies a total consideration for all the Shares of

approximately NOK 3,787 million (based on 94,678,584 shares outstanding as per

19 September 2023). The Offer Price implies:

· A premium of 66.7% to the closing price of the Shares on the Oslo Stock

Exchange on 19 September 2023 of NOK 24.0.

· A premium of 65.1% to the volume weighted average share price adjusted for

dividend during the last six months up to and including 19 September 2023 of NOK

24.2.

· A premium of 63.2% to the volume weighted average share price adjusted for

dividend during the last twelve months up to and including 19 September 2023 of

NOK 24.5.

The Offer Price will be reduced by the amount of any dividend or other

distributions made by the Company.

The complete details of the Offer, including all terms and conditions, will be

contained in an offer document (the "Offer Document") to be sent to the

Company's shareholders following review and approval by the Oslo Stock Exchange

pursuant to Chapter 6 of the Norwegian Securities Trading Act. The Offer

Document is expected to be approved during the week commencing 9 October 2023.

The Offer may only be accepted based on the Offer Document.

The Offer is not subject to any financing condition. As further detailed and

specified in the Offer Document, completion of the Offer will be subject to

fulfilment or waiver by the Offeror (in its sole discretion) of the following

conditions:

1. valid acceptance of the Offer by eligible shareholders to such extent that

the Offeror becomes the owner of shares representing more than 90% of the issued

and outstanding shares and voting rights in the Company on a fully diluted

basis;

2. A unanimous recommendation from the board of directors of the Company to its

shareholders to accept the Offer having been issued and not, without the

Offeror's written consent, been amended, qualified, modified or withdrawn;

3. The Company conducting its business in the ordinary course;

4. The Company shall not be in material breach of the Transaction Agreement (as

defined below);

5. No material adverse change to the business, assets, operations or financial

condition of the Company shall have occurred between the date of the Transaction

Agreement (as defined below) and completion of the Offer; and

6. No governmental interference hindering consummation of the Offer in

accordance with its terms.

If, as a result of the Offer or otherwise, the Offeror acquires and holds more

than 90% of the total issued share capital of the Company representing more than

90% of the voting rights in the Company, the Offeror intends to carry out a

compulsory acquisition of the remaining Shares in the Company. Also, if the

Offeror following completion of the Offer or otherwise holds a sufficient

majority of the Shares in the Company, the Offeror intends to propose to the

general meeting of the Company that an application is filed with Oslo Stock

Exchange to de-list the shares of the Company.

The initial acceptance period in the Offer will commence following publication

of the Offer Document and is expected to last for 20 business days, subject to

any amendments by the Offeror. Barring unforeseen circumstances or any

extensions of the acceptance period of the Offer, it is expected that the Offer

will be completed in Q4 2023.

The Offeror and the Company have entered into a transaction agreement (the

"Transaction Agreement") regarding the Offer. As part of the Transaction

Agreement, the Company's board of directors has agreed to only amend or withdraw

its recommendation of the Offer if a competing offer is made which exceeds the

Offer in economic value per Share with 5% or more (a "Superior Offer") and the

Offeror has not matched the Superior Offer within 10 business days after receipt

of notice from the Company. In the event the Offer is not completed due to a

material breach by the Company that entitles the Offeror to terminate the

Transaction Agreement, or if the Company's board of directors withdraws,

qualifies or amends its recommendation of the Offer, the Company shall pay the

Offeror a fixed termination fee which is deemed to reflect the costs and

expenses of the Offeror in connection with the negotiations of the Transaction

Agreement and the preparation of the Offer.

The Offer will not be made in any jurisdiction in which the making of the Offer

would not be in compliance with the laws of such jurisdiction.

Mario Pello, Head of TIAA General Account, Europe at Nuveen Real Estate,

comments:

"TIAA is a major owner of self-storage in the US and Europe, having invested in

the sector for more than 20 years.

In Europe, we have been actively monitoring the growth journey of the Company

for a long period of time given the high quality of the portfolio, the Company's

dominant positioning in the Norwegian market and strong synergies with our

existing Swedish platform. Through the acquisition of the Company, we will

create a unique pan-Nordic platform with market-leading positions in Norway and

Sweden - two of our high conviction markets - with scope to expand further into

Denmark.

Fabian Søbak, Chief Executive Officer of the Company, said:

"Having co-founded OK minilager in 2009 having identified a unique market

opportunity for self-storage in the Nordics, I am extremely proud of the

company's and the team's achievements. Through acquisitions such as City-Self

Storage, Eurobox, Dit Pulterkammer and numerous asset transaction, as well as

organic growth focus, we have together built a leading pan-Scandinavian self

-storage company. Well supported by Centerbridge, we successfully leveraged our

market leading position in Norway to accelerate growth across Scandinavia. I am

confident that Nuveen and their Green Storage platform will be a good new owner

for the company, and also provide an exciting opportunity for the great SSG

team."

Steven Skaar, Chairman of the Board of the Company, said:

"The Board believes the terms of the offer are in the best interests of Self

Storage Group and our shareholders, and also benefitting our employees,

customers and partners. The Board recommends the offer as it represents a fair

valuation of the company."

Background and Transaction Rationale

The relative immaturity of the self-storage market across Europe presents an

exciting opportunity to take advantage of a sector that has proven resilient and

remains primed for further growth as it continues to institutionalise over the

coming years.

In this context, TIAA and Nuveen remain positive regarding the longer-term

outlook for the self-storage sector in Europe. Having invested in the sector in

the US for more than 20 years, the first European investment was completed in

2021 through the acquisition of the Green Storage and 24Storage platforms in

Sweden. While the focus over the last 18 months has been to consolidate the two

Swedish platforms under the Green Storage operating brand and grow via organic

bolt-on acquisitions, the acquisition of the Company helps to fast-track the

business plan of creating a market-leading pan-Nordic storage platform - with

scope to leverage the combined platform, and best-in-class management expertise,

to grow further. Nuveen has a lengthy track-record as investment advisor in the

self-storage sector and will continue to play an active role supporting local

management in both the consolidation and subsequent growth phases.

Advisers

Arctic Securities is acting as financial advisor and Advokatfirmaet BAHR is

acting as legal advisor for the Offeror. ABG Sundal Collier is acting as

financial advisor and Advokatfirmaet Schjødt is acting as legal advisor for the

Company.

***

The Offer and the distribution of this announcement and other information in

connection with the Offer may be restricted by law in certain jurisdictions.

When published, the Offer Document and related acceptance forms will not and may

not be distributed, forwarded or transmitted into or within any jurisdiction

where prohibited by applicable law, including, without limitation, Canada,

Australia, New Zealand, South Africa, Hong Kong and Japan. The Offeror does not

assume any responsibility in the event there is a violation by any person of

such restrictions. Persons into whose possession this announcement or such other

information should come are required to inform themselves about and to observe

any such restrictions.

This announcement is not a tender offer document and, as such, does not

constitute an offer or the solicitation of an offer to acquire the Shares.

Investors may accept the Offer only on the basis of the information provided in

the Offer Document. Offers will not be made directly or indirectly in any

jurisdiction where either an offer or participation therein is prohibited by

applicable law or where any tender offer document or registration or other

requirements would apply in addition to those undertaken in Norway.

Notice to U.S. Holders

U.S. Holders (as defined below) are advised that the Shares are not listed on a

U.S. securities exchange and that the Company is not subject to the periodic

reporting requirements of the U.S. Securities Exchange Act of 1934, as amended

(the "U.S. Exchange Act"), and is not required to, and does not, file any

reports with the U.S. Securities and Exchange Commission (the "SEC") thereunder.

The Offer will be made to holders of Shares resident in the United States ("U.S.

Holders") on the same terms and conditions as those made to all other holders of

Shares of the Company to whom an offer is made. Any information documents,

including the Offer Document, will be disseminated to U.S. Holders on a basis

comparable to the method that such documents are provided to the Company's other

shareholders to whom an offer is made. The Offer will be made by the Offeror and

no one else.

The Offer will be made to U.S. Holders pursuant to Section 14(e) and Regulation

14E under the U.S. Exchange Act as a "Tier II" tender offer, and otherwise in

accordance with the requirements of Norwegian law. Accordingly, the Offer will

be subject to disclosure and other procedural requirements, including with

respect to the offer timetable, settlement procedures and timing of payments,

that are different from those that would be applicable under U.S. domestic

tender offer procedures and law.

Pursuant to an exemption from Rule 14e-5 under the U.S. Exchange Act, the

Offeror and its affiliates or brokers (acting as agents for the Offeror or its

affiliates, as applicable) may from time to time, and other than pursuant to the

Offer, directly or indirectly, purchase or arrange to purchase, Shares or any

securities that are convertible into, exchangeable for or exercisable for such

Shares outside the United States during the period in which the Offer remains

open for acceptance, so long as those acquisitions or arrangements comply with

applicable Norwegian law and practice and the provisions of such exemption. To

the extent information about such purchases or arrangements to purchase is made

public in Norway, such information will be disclosed by means of an English

language press release via an electronically operated information distribution

system in the United States or other means reasonably calculated to inform U.S.

Holders of such information. In addition, the financial advisors to the Offeror

may also engage in ordinary course trading activities in securities of the

Company, which may include purchases or arrangements to purchase such

securities.

Neither the SEC nor any securities supervisory authority of any state or other

jurisdiction in the United States has approved or disapproved the Offer or

reviewed it for its fairness, nor have the contents of the Offer Document or any

other documentation relating to the Offer been reviewed for accuracy,

completeness or fairness by the SEC or any securities supervisory authority in

the United States. Any representation to the contrary is a criminal offence in

the United States.