Parkway Inc (NYSE: PKY) is off to a strong day in the market this morning, and for good reason. The company announced that it would be acquired. Of course, this news is leading to excitement among investors who are sending the stock toward the sky. As is nearly always the case, our partners at Trade Ideas were the first to alert us to the gains. At the moment (8:41), PKY is trading at $21.06 per share after a gain of $0.68 per share or 3.34% thus far today.
PKY Gains On Acquisition News
As mentioned above, Parkway is having an incredibly strong time in the pre-market hours this morning after announcing that the company will be acquired. Early this morning, it was announced that the company entered into a definitive agreement with CPPIB, who will be purchasing 100% of PKY. The sale will close at a price of $1.2 billion, representing a price of $23.05 per share. In a statement, James R. Heistand, President and CEO at PKY, had the following to offer…
“CPPIB shares our view of the long-term resiliency of the Houston market, and we believe this transaction demonstrates our commitment to enhancing shareholder value… We believe there are still some near-term headwinds in the office sector for Houston, but the implied asset valuation of this transaction shows CPPIB’s appreciation for the high-quality portfolio we have assembled and the near-term stability it provides during the current downturn in the market.”
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on PKY. In particular, we’re interested in following the news surrounding this acquisition as it is still subject to customary closing conditions. Nonetheless, the deal is supposed to close in the fourth quarter of 2017, and we’re expecting it to go off without a hitch. We’ll continue to follow the story closely and bring the news to you as it breaks!
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