Status: 14.09.2021 10:03 a.m.
Nothing stands in the way of the merger of the two largest private German real estate groups: Vonovia will now also take over Deutsche Wohnen if shareholders offer the company less than half of the shares.
In the second attempt, Vonovia now wants to finally swallow its competitor Deutsche Wohnen. In return, the housing company waived the minimum acceptance threshold of 50 percent of Deutsche Wohnen shares after a message from yesterday evening.
In all likelihood, this will create a group with more than half a million residential units. Vonovia owns around 414,000 apartments in Germany, Austria and Sweden, of which 354,000 are residential units in Germany alone. Deutsche Wohnen is the largest private landlord in the capital: around 114,000 of the more than 155,000 apartments are in the greater Berlin area.
Two more weeks
“Vonovia waived all terms and conditions in the voluntary public takeover offer for the shares in Deutsche Wohnen,” said Vonovia. This also means that the minimum acceptance threshold does not apply. So far Vonovia boss Rolf Buch had made an acceptance threshold of at least 50 percent of Deutsche Wohnen shares a condition of a takeover. At the same time, the acceptance period, which originally expired on September 20, 2021, will be extended by two weeks and will now end on October 4, 2021. This means that Deutsche Wohnen shareholders have more time to tender their shares. “The transaction can no longer fail due to conditions,” Buch told the news agency Reuters.
Deutsche Wohnen has already approved the abolition of the takeover threshold. There are no valid reasons for Deutsche Wohnen to refuse to agree to the waiver of the minimum acceptance threshold, said the former competitor, which is also listed in the DAX leading index.
First attempt failed
At the end of July, Vonovia’s original takeover offer for Deutsche Wohnen just failed to reach the minimum acceptance threshold of 50 percent. Only 47.62 percent of the shares in Deutsche Wohnen were offered to the group. CEO Rolf Buch had blamed hedge funds for the failure of the billion dollar transaction. For the new attempt, he increased the offer at the beginning of August by one euro to 53 euros per share.
According to Vonovia, the 50 percent threshold is likely to come very close to or even exceed it in the coming weeks. According to its own statements, the group has already secured more than 40 percent of its Berlin competitor. In addition, the two groups have agreed that if the minimum acceptance threshold is abolished, Deutsche Wohnen will sell its own shares to Vonovia. This means that almost one percent of the shares will go to Bochum. In addition, there is a further 5.17 percent that Vonovia will receive from a capital increase.
Majority at general meetings
Vonovia had already secured around 30 percent of Deutsche Wohnen in the past few months. CEO Buch can already be sure of a majority at the general meetings of Deutsche Wohnen. This enables important decisions about the future of the merged company to be enforced. Vonovia can also buy additional shares on the market.
Deutsche Wohnen will then no longer pay dividends for the foreseeable future, he affirmed. Because at Deutsche Wohnen, major investments are pending, for example for the energetic renovation of buildings. On the stock exchange, the shares of both companies reacted slightly positive to the news in over-the-counter trading that evening.