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The Hong Kong-based company that kicked off the bidding to buy National Storage REIT (ASX: NSR) has thrown in the towel after completing due diligence.
Gaw Capital Partners (GCP) made a $2.20 per share offer in January, which was followed by a similar bid from New York-headquartered private equity firm Warburg Pincus.
A US$40 billion company from California called Public Storage (NYSE: PSA) then made its presence known, raising the stakes to $2.40 per share.
NSR confirmed this morning that Gaw was unable to match that amount.
"Overnight Gaw advised NSR that it is unable to make an offer to NSR of $2.40 or greater per NSR stapled security and consequently has withdrawn from the process being conducted by NSR, pending further developments," the company said.
"NSR is continuing to work with Warburg Pincus and Public Storage in relation to their proposals to acquire NSR and both those parties are continuing to conduct due diligence on NSR.
"There is no certainty that discussions with those parties will lead to a final recommended offer to NSR securityholders."
Investors appear undeterred by the withdrawal, with shares down slightly by 0.63 per cent at $2.355 at 11:55am AEDT.
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