City Office REIT, Inc. announced on July 24, 2025, that it has entered into a definitive merger agreement with MCME Carell Holdings, LP and MCME Carell Holdings, LLC. Under the terms of the agreement, MCME Carell will acquire all outstanding shares of City Office common stock for $7.00 per share in cash.
The transaction is valued at approximately $1.1 billion, which includes the assumption or repayment of indebtedness and the redemption of the company's issued and outstanding preferred stock. The $7.00 per share price represents a 26% premium to City Office's common stock closing share price on the NYSE prior to the announcement, and a 39% premium to the volume weighted average share price over the previous 90 days.
Holders of the company's 6.625% Series A Cumulative Preferred Stock will receive $25.00 per share in cash, plus all accrued and unpaid distributions up to the closing date. The transaction has been unanimously approved by City Office's Board of Directors and is expected to close in the fourth quarter of 2025, subject to shareholder approval and the sale of the company's Phoenix portfolio.
In conjunction with the merger agreement, City Office's Board of Directors has resolved to suspend future quarterly common stock dividend payments through the expected close of the transaction. The company will continue to pay regular quarterly dividends on its Series A Cumulative Preferred Stock.
Upon completion of the transaction, City Office will become a private company, and its common and preferred shares will no longer trade on the NYSE. This acquisition provides immediate and significant value to shareholders in a challenging environment for the office sector.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.