Status: 07.10.2021 14:34
In the third attempt it finally worked: the Vonovia housing group has secured a majority of the shares in its competitor Deutsche Wohnen. Nothing stands in the way of a takeover.
By far the largest private housing group in Europe is emerging in Germany. As the Bochum company Vonovia announced today, it is now owned by 60.3 percent of the shares in the Berlin rival Deutsche Wohnen. Nothing stands in the way of the merger of the two DAX groups. The Bundeskartellamt had already stated in June that it had no concerns.
Vonovia’s last takeover offer for Deutsche Wohnen had failed at the end of July due to the minimum acceptance threshold of 50 percent. The Bochum company was only able to collect 47.6 percent of the shares. The company waived this condition shortly before the end of the offer period. The management had also increased its offer for Deutsche Wohnen to 53 euros per share – a total of a good 19 billion euros. With this, the ground was practically withdrawn from a renewed failure of the takeover.
Offer period extended
Vonovia announced at the beginning of last week that it held a 50.49 percent stake in Deutsche Wohnen. Nevertheless, the acceptance period for Deutsche Wohnen shares was extended to October 21. Market observers estimate that this could increase the share of paper to up to 70 percent.
The Bochum-based company has ruled out a profit transfer and domination agreement that would result in a further – possibly higher – offer for the next three years. Investors who speculate on a higher price have to be patient and also run the risk of a falling price. Vonova also secured the support of the management of Deutsche Wohnen at an early stage. Their boss, Michael Zahn, and his CFO Philip Grosse should move into the Vonovia board: Zahn as deputy to CEO Rolf Buch, Grosse as CFO.
Under pressure in Berlin
The merger creates by far the largest listed housing group in Europe. The two companies listed in the leading DAX index of the Frankfurt Stock Exchange together own around 550,000 apartments valued at more than 80 billion euros, most of them in Germany.
In Berlin, where most of the Deutsche Wohnen portfolio is located, the company has come under fire. There, a broad alliance of various groups is campaigning for the expropriation of the company – and even managed to unite a majority of eligible voters in a referendum on election Sunday at the end of September. The vote is not legally binding; also the top candidate of the Berlin SPD, Franziska Giffey, has spoken out against a Vergesellschaft. But the vote has significantly increased the pressure on the large housing groups. Vonovia boss Rolf Buch has therefore offered the future Berlin state government to work on a constructive solution to the housing problem in the capital.