CPPIB To Acquire Parkway For $1.2 Bln

Canada Pension Plan Investment Board or CPPIB has agreed to acquire Parkway Inc. (PKY), a Houston-based real estate investment trust, for $1.2 billion, or $23.05 per share, the two companies said Friday.

The transaction is not subject to a financing condition and is expected to close in the fourth quarter of 2017.

The $23.05 per share consideration, which consists of $19.05 per share plus a $4.00 special dividend to be paid prior to closing, represents a premium of about 13.1 percent when compared to the prior closing price.

Parkway’s board of directors unanimously approved the agreement. TPG Capital and its affiliates, which collectively own about 9.8 percent of the outstanding common stock of Parkway, have agreed to vote in favor of the transaction.

Parkway said it will pay its previously-announced second quarter dividend on June 30, 2017, but will suspend…

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