In a notable development, Cousins Properties Incorporated (CUZ - Free Report) declared the anticipated closing date of the previously announced merger with Parkway Properties Inc. (PKY - Free Report) . The company has fixed Oct 6, 2016 as the spin-off day and the following day has been scheduled for the distribution.
In Apr, 2016, these two companies signed a definitive agreement for over $2 billion for a stock-for-stock merger and the simultaneous spin-off of the Houston-based assets of both companies into a new publicly traded REIT ("HoustonCo"). In August, the merger received approval from stockholders of both the companies by an overwhelming majority (read more: Cousins Properties-Parkway Merger Gets Shareholders' Nod).
Per the agreement, the spin-off will be executed through a pro rata dividend of one share of New Parkway common stock for every eight common shares of Cousins. The date fixed for the closing of the spin-off may also be delayed, subject to the satisfaction of the conditions of the merger.
Both Cousins and Parkway carry a Zacks Rank #3 (Hold). The long-term projected growth rates of these two companies are 2.6% and 8%, respectively.
A couple of better-ranked stocks in the same space include CorEnergy Infrastructure Trust, Inc. (CORR - Free Report) and Crown Castle International Corp. (CCI - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CorEnergy Infrastructure Trust’s current quarter estimates remained stable over the last month.
Current quarter estimates for Crown Castle International moved up over the past one month.
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