TORONTO, May 4 /CNW/ - PS Canada Company ULC ("PS Canada"), a company indirectly controlled by B. Wayne Hughes and Tamara L. Gustavson, announced today that it intends to make an offer (the "Offer") to acquire all of the units (the "Units") of Public Storage Canadian Properties ("PSCP") (TSX: PUB) not already owned by PS Canada or its affiliates at a price of $17.00 per Unit in cash. PS Canada and its affiliates currently hold 5,129,717 Units, representing approximately 56.7% of the outstanding Units.
The terms and conditions of the Offer will be described in a formal offer and take-over bid circular which is expected to be sent to Unitholders and filed with the Canadian securities regulatory authorities within the next two weeks. The Offer will be open for acceptance for at least 35 days and will be subject to customary conditions, including the deposit of at least a majority of the Units held by minority Unitholders.
In accordance with applicable Canadian securities laws, the Board of Directors of Canadian Mini-Warehouse Properties Company, the general partner of PSCP, has established a special committee of independent directors to supervise the preparation of a formal valuation of the Units and review and make a recommendation with respect to the Offer.
The Offer price represents a premium of $3.00 or approximately 21.4% to the closing price of the Units on the TSX on May 4, 2010 of $14.00. PS Canada believes that it is a compelling offer, as it provides Unitholders with liquidity for their investment and the opportunity to realize immediate fair value for their Units substantially in excess of their prevailing market price.
PS Canada understands that the Independent Committee is reviewing the Offer with its financial and legal advisors and will formally respond following completion of that evaluation.
This press release does not constitute an offer to purchase any securities. The offer will be made only pursuant to the offer and take-over bid circular that PS Canada will distribute to Unitholders and file with Canadian securities authorities. Unitholders are urged to read the offer and take-over bid circular when they become available because they will contain important information, including the various terms of, and conditions to, the offer. Unitholders may obtain a free copy of the offer and take-over bid circular and related documents filed with the Canadian securities authorities when they become available at www.sedar.com.
SOURCE PUBLIC STORAGE CANADIAN PROPERTIES
For further information: For further information: David Singelyn, 1-877-774-5730