Columbia Property Trust announced Monday that it has entered into a definitive agreement to be acquired by funds managed by Pacific Investment Management Company LLC (PIMCO) for $3.9 billion, including Columbia’s proportionate share of consolidated and unconsolidated debt.
PIMCO will pay $19.30 per share in cash, a 27% premium over Columbia’s unaffected closing share price on March 12. During this time period, the high barrier office sector has traded down 5%.
“This transaction provides Columbia shareholders with immediate and certain cash value at a significant premium to the Company’s public market valuation,” Constance Moore, chairman of the Columbia Board of Directors, said in a statement.
John Murray, PIMCO’s global head of private commercial real estate, added, “We continue to believe that high-quality office buildings in major U.S. cities offer long-term value for our clients and Columbia has assembled a modernized, well-located portfolio of assets that we expect will perform well in the years ahead.”
The transaction is expected to close as early as year’s end, subject to approval by Columbia’s shareholders and the satisfaction of other customary closing conditions. Upon completion of the transaction, Columbia’s common stock will no longer be listed on the New York Stock Exchange (NYSE). The two companies announced the deal in the spring.
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