CPPIB To Acquire Parkway For $1.2 Bln - Quick Facts

(RTTNews) - 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 all future quarterly dividend payments through the expected close of the transaction.

Parkway owns the largest office portfolio in Houston, totaling approximately 8.7 million square feet across 19 properties. Located in Westchase, Greenway and Galleria, the office properties are 87.6 percent leased as of March 31, 2017.