Parkway To Be Bought For $1.2 Billion By CPPIB, a 13% Premium

Parkway Inc. announced Friday a deal to be acquired by Canada Pension Plan Investment Board (CPPIB) for $1.2 billion. Under terms of the deal, Parkway shareholders will receive $23.05 for each of the real estate investment trust's shares they own, a 13% premium to Thursday's closing price of $20.38. CPPIB's bid per share consists of $19.05 plus a $4.00 special dividend to be paid prior to the closing of the deal, which is expected to take place during the fourth quarter of 2017. Parkway's stock was inactive prior to a trading halt for news. It has lost 8.4% year to date, while the SPDR Real Estate Select Sector ETF has gained 4.8% and the S&P 500 has climbed 8.1%.