Big Yellow surges as Blackstone says it's considering bid

(Sharecast News) - Big Yellow Group surged on Monday after private equity firm Blackstone confirmed it is considering a possible offer for the self-storage company. In a brief statement in response to recent press speculation, Blackstone said that one or more of the investment funds it advises is considering an offer.

"Blackstone Funds' evaluation of Big Yellow is at a preliminary stage and Blackstone is considering, amongst other factors, the macro-economic environment including the potential impact of the upcoming UK budget as it relates to the self-storage sector," it said.

There can no certainty that any offer for will be made nor as to the terms of any such offer, it said, adding that a further announcement will be made as appropriate.

Under UK takeover rules, Blackstone has until 10 November to either make a firm offer or walk away.

In a separate statement, Big Yellow confirmed that it has held meetings with a small number of parties in relation to a range of potential options including a potential sale.

"The company is not in receipt of an approach and is not in discussions with any parties in respect of a potential sale of the company at the time of this announcement," it said.

At 1020 BST, Big Yellow shares were up 19% at 1,150p.

Russ Mould, investment director at AJ Bell, said: "A lot is riding on the Budget as to whether Blackstone will make a formal bid, but throwing its hat into the ring now means it can act fast should Rachel Reeves not announce anything that dampens the appeal of the sector."