Vonovia makes improved takeover offer for rival Deutsche Wohnen
Berlin (Germany), August 24: Following a failed takeover attempt last month, German housing giant Vonovia made an improved public offer to shareholders of its rival Deutsche Wohnen on Monday.
Resulting in a valuation of around 19 billion euros (22.2 billion U.S. dollars), Vonovia increased its offer per share from 52 euros to 53 euros after only securing 47.62 percent of nominal capital and voting rights of Deutsche Wohnen at the beginning of August.
"Both companies view a combination of the two companies as strategically and socially compelling," Vonovia said in a statement, adding that there would be no third offer and the price would not be raised any further. A first takeover attempt had already failed in 2015.
"It is also important for small shareholders to know that Vonovia, as the majority shareholder of Deutsche Wohnen, will work to ensure that Deutsche Wohnen no longer pays dividends," Vonovia CEO Rolf Buch told Reuters on Monday.
The merger, already approved by financial regulator BaFin in early August, would result in a real estate company with a combined property value of nearly 90 billion euros and more than 500,000 apartments in Germany. (1 euro = 1.17 U.S. dollars).
Source: Xinuha