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Vonovia willing to extend offer for shares in Deutsche Wohnen

Staff writer |
Vonovia SE intends to extend an offer to all Deutsche Wohnen AG shareholders to acquire all outstanding shares in Deutsche Wohnen.

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Vonovia is reacting to Deutsche Wohnen AG's takeover offer for LEG Immobilien AG, announced on September 20, 2015. If Deutsche Wohnen shareholders reject the Deutsche Wohnen-LEG Immobilien AG transaction at their extraordinary general meeting on October 28, 2015, Vonovia will submit a formal offer.

The offer aims to integrate the two companies' complementary portfolios, unlocking substantial synergies for the benefit of tenants and shareholders. Deutsche Wohnen AG's 140,000 properties would ideally complement Vonovia's existing portfolio of 370,000 residential units. Vonovia expects resulting economies of scale and operating synergies of EUR 84 million per annum (pre-tax).

For every 11 Deutsche Wohnen AG shares, Vonovia SE intends to offer a consideration of EUR 83.14 in cash and 7 Vonovia shares, representing a value of EUR 25.86 per Deutsche Wohnen share at October 8, 2015 closing prices.

The aggregate transaction value thus amounts to around EUR 14 billion (including premium and debt). The transaction results in an initial loan-to-value (LTV) ratio of 55 %, which will allow Vonovia to continue to uphold its target LTV of below 50 % in the medium term.

The exchange ratio and cash component represents a premium of approximately 9.8 % based on the share prices on 8 October 2015 and a premium of approximately 11 % based on the weighted average prices during the last three months until the same date.


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