Private equity firm Blackstone is considering a potential cash offer for Big Yellow Group, the UK's largest self-storage provider, the company said on Monday.
In a response to an announcement by Blackstone and recent media speculation, Big Yellow confirmed it has held meetings with a small number of parties to explore options, including a potential sale.
However, the company stated it is not currently in discussions with any potential suitors and has not received a formal approach.
The takeover interest comes as Big Yellow navigates a slowdown in occupancy growth, which it has previously attributed to macroeconomic uncertainty.
The company has been raising rental rates to lift revenue while continuing to expand its footprint, recently announcing the acquisition of a site in London for 10.8 million British Pounds.
Big Yellow operates 110 storage facilities, with most of its revenue generated in London and its commuter towns.
The company noted that there can be no certainty that an offer will ultimately be made.
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Big Yellow Group on Monday reported a 9% rise in first-half adjusted profit, presenting a mixed picture of rising rents and falling occupancy for private equity firm Blackstone as it weighs a potential takeover bid.
Blackstone has been granted an extension to its deadline to either make a formal takeover offer for Big Yellow Group or walk away from a potential deal.
Big Yellow Group on Friday confirmed its total shares in issue, a formal step required under UK takeover rules after the company became the subject of bid speculation.
Big Yellow Group said it will acquire a property in East London for 10.8 million British Pounds, pushing ahead with expansion plans despite a recent slowdown in occupancy growth.