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Dec. 20, 2013 /PRNewswire/ -- Parkway Properties, Inc. (NYSE: PKY) ("Parkway") today announced the completion of the merger with Thomas Properties Group, Inc. (NYSE: TPGI) ("Thomas Properties") valued at approximately
$1.2 billion. The transaction was approved by stockholders of each company at their respective stockholder meetings on
December 17, 2013. The combined company will continue to trade under Parkway's existing ticker symbol, "PKY", on the New York Stock Exchange.
As a result of the merger, each former share of Thomas Properties common stock has been converted into 0.3822 of a newly issued share of Parkway common stock and each former share of Thomas Properties limited voting stock has been converted into 0.3822 of a newly issued share of Parkway limited voting stock. Former Thomas Properties stockholders hold approximately 25% of the combined company's equity, with continuing Parkway stockholders holding approximately 75% of the combined company's equity. Effective with the close of the market today, Thomas Properties' shares of common stock will no longer be traded on the New York Stock Exchange.
James R. Heistand, President and Chief Executive Officer of Parkway, stated, "We are thrilled to have completed this transaction as it represents a major step forward in Parkway's long-term strategy to be the premier owner and operator of Class A office buildings in the Sunbelt. We are excited to add these ten high-class buildings to our portfolio, as they will strengthen our position in the
Houston market and provide entry to the
Austin market with scale. We are confident that we will be able to capitalize on the strong office fundamentals in these two markets and successfully implement our local market operational strategy to unlock additional value at the assets."
Parkway also announced that it completed the sale of Thomas Properties' ownership interest in two office properties located in
Philadelphia, Pennsylvania known as Commerce Square to Brandywine Realty Trust (NYSE: BDN) ("Brandywine"), based on a gross property value of
$331.8 million. Additionally, Parkway announced that it completed the sale of Thomas Properties' Four Points Centre and a contiguous land parcel located in
Austin, Texas to Brandywine for a gross sale price of
$47.3 million. Parkway received approximately
$93.5 million in net proceeds from the sale of these assets.
James A. Thomas, the former Chairman, President and Chief Executive Officer of Thomas Properties, has joined Parkway's board of directors and will serve as Chairman of the board. "I am very pleased with the completion of this transaction which brings together these two entities and results in a strong company with an attractive portfolio in desirable markets," stated Mr. Thomas. Parkway's current executive officers will continue as the executive officers of the combined company.
BofA Merrill Lynch served as exclusive financial advisor to Parkway, and Hogan Lovells US LLP acted as its legal counsel. Morgan Stanley & Co. LLC served as exclusive financial advisor to Thomas Properties, and Skadden, Arps, Slate, Meagher & Flom LLP acted as its legal counsel.