Shares in AIM-listed self-storage site operator Lok’n Store Group (LOK:AIM) hit a new high last week after the firm revealed it had been approached by Belgian company Shurgard with a cash offer for the business.

Shurgard’s offer of £11.10 represents roughly a 16% premium to the undisturbed share price the day before the offer which is considerably below the average take-out premium of 51% this year.

If the deal goes through – as advocated by Lok’n Store chairman Andrew Jacobs, who owns 12% of the shares – it will mean 35 ‘fledgling’ companies have been taken private in the past 12 months, the highest total in the last 12 years according to accounting firm UHY Hacker Young.

Part of the appeal for Shurgard will be synergies with its own business, but the wide discount to NAV (net asset value) on UK commercial property and the poor performance of AIM over the past year no doubt contributed to the timing of the approach.

Lok’n Store is enjoyed strong demand for storage solutions in a market which is under-supplied, leading to steady growth in revenue per square foot.

The firm is opening four new stores this with two more on the drawing board.

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