We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Parkway (PKY) Receives Shareholders' Approval for Merger
Read MoreHide Full Article
Houston, TX-based office REIT Parkway, Inc. announced that its merger with an affiliate of Canada Pension Plan Investment Board (CPPIB) has been considered and approved by the company’s stockholders.
In a special meeting, 85.58% of outstanding common shares and shares of limited voting stock voted in favor of the proposed merger. This class of common and voting stock consisted 99.68% of the total votes cast at the meeting.
On Jun 30, Parkway announced that it has struck a definitive agreement to be acquired by CPPIB for $1.2 billion.
Per the agreement, Parkway’s shareholders will receive $23.05 per share, comprising $19.05 per share merger consideration and a $4 special dividend. The share price consideration denotes a premium of around 14.3%, when compared to Parkway's 30-day volume weighted average price ended Jun 29, 2017. (Read more: Parkway to be Acquired by Canada Pension Plan for $1.2B)
The company also announced a special cash dividend of $4 per share of common stock. The dividend will be paid to shareholders of record as of Oct 9, 2017. However, the payment is subject to the satisfaction or waiver of all the conditions to the closing of the merger.
The deal, which is conditioned upon customary closing norms, is expected to close on or around Oct 12, 2017.
Notably, Parkway enjoys ownership of the largest office portfolio in Houston. Positioned in favorable areas of Greenway, Galleria and Westchase submarkets of Houston, this portfolio consists of five Class A assets, comprising 19 buildings, and aggregates around 8.7 rentable square feet of space. This portfolio was 87.6% leased as of Mar 31, 2017, and its tenants came from a broad mix of industries, including financial services, technology and commodities businesses.
However, the company has been facing a challenging time amid the lackluster energy market which has crippled the Houston office market. Nonetheless, the U.S. office vacancy rate remained steady at 13% in the second quarter amid balanced demand-supply, according to a CBRE Group report. In around half of the U.S. office markets, vacancy recorded a decline and the national office vacancy rate is hovering close to its post-recession low.
Additionally, corporate profits are up and business confidence has recovered. Going forward, with economic improvement and recovery in the job market, demand for office space is expected to shoot up. This will drive growth for office real estate investment trusts like Piedmont Office Realty Trust (PDM - Free Report) , Cousin Properties Incorporated (CUZ - Free Report) and Boston Properties, Inc. (BXP - Free Report) .
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Parkway (PKY) Receives Shareholders' Approval for Merger
Houston, TX-based office REIT Parkway, Inc. announced that its merger with an affiliate of Canada Pension Plan Investment Board (CPPIB) has been considered and approved by the company’s stockholders.
In a special meeting, 85.58% of outstanding common shares and shares of limited voting stock voted in favor of the proposed merger. This class of common and voting stock consisted 99.68% of the total votes cast at the meeting.
On Jun 30, Parkway announced that it has struck a definitive agreement to be acquired by CPPIB for $1.2 billion.
Per the agreement, Parkway’s shareholders will receive $23.05 per share, comprising $19.05 per share merger consideration and a $4 special dividend. The share price consideration denotes a premium of around 14.3%, when compared to Parkway's 30-day volume weighted average price ended Jun 29, 2017. (Read more: Parkway to be Acquired by Canada Pension Plan for $1.2B)
The company also announced a special cash dividend of $4 per share of common stock. The dividend will be paid to shareholders of record as of Oct 9, 2017. However, the payment is subject to the satisfaction or waiver of all the conditions to the closing of the merger.
The deal, which is conditioned upon customary closing norms, is expected to close on or around Oct 12, 2017.
Notably, Parkway enjoys ownership of the largest office portfolio in Houston. Positioned in favorable areas of Greenway, Galleria and Westchase submarkets of Houston, this portfolio consists of five Class A assets, comprising 19 buildings, and aggregates around 8.7 rentable square feet of space. This portfolio was 87.6% leased as of Mar 31, 2017, and its tenants came from a broad mix of industries, including financial services, technology and commodities businesses.
However, the company has been facing a challenging time amid the lackluster energy market which has crippled the Houston office market. Nonetheless, the U.S. office vacancy rate remained steady at 13% in the second quarter amid balanced demand-supply, according to a CBRE Group report. In around half of the U.S. office markets, vacancy recorded a decline and the national office vacancy rate is hovering close to its post-recession low.
Additionally, corporate profits are up and business confidence has recovered. Going forward, with economic improvement and recovery in the job market, demand for office space is expected to shoot up. This will drive growth for office real estate investment trusts like Piedmont Office Realty Trust (PDM - Free Report) , Cousin Properties Incorporated (CUZ - Free Report) and Boston Properties, Inc. (BXP - Free Report) .
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>