CPPIB to buy US REIT Parkway in $1.2 bln deal: Reuters

Canada Pension Plan Investment Board (CPPIB) said on Friday it would buy Parkway Inc, a real estate investment trust, in a deal valued at $1.2 billion.

CPPIB, Canada’s biggest public pension fund, will pay Parkway shareholders $19.05 per share and a $4 special dividend, the companies said on Friday.

Parkway’s shares surged 11.4 percent to $22.7 in premarket trading on Friday, slightly below the $23.05 per share deal.

The fund’s offer to buy Parkway comes just two days after CPPIB said it would invest up to $1 billion to buy oil and gas assets in the United States in partnership with Encino Energy Ltd.

Parkway, in which private equity firm TPG Capital has a 9.8 percent stake, owns a portfolio of about 8.7 million square feet across 19 properties in Houston, the company said.

HFF Securities LP was Parkway’s financial adviser and Hogan Lovells US LLP was its legal adviser.