Vonovia Unlikely to Secure Enough Support From Deutsche Wohnen Shareholders to Pursue Takeover
July 23 2021 - 11:36AM
Dow Jones News
By Olivia Bugault
Vonovia SE said Friday that it won't likely reach the minimum
shareholder acceptance threshold necessary to pursue its takeover
of German property company Deutsche Wohnen SE.
Vonovia's tender offer had been accepted by roughly 47.62% of
all Deutsche Wohnen shares at the end of the acceptance period on
July 21, which is below the minimum threshold of 50%, it said. The
company therefore said the threshold likely won't be reached adding
"this assumes that there are no material increases of the
acceptance level during the remaining rebooking period," which ends
today at 1600 GMT.
The company had offered a total consideration of EUR53.03 per
Deutsche Wohnen share, consisting of an offer price of EUR52 in
cash plus Deutsche Wohnen's proposed dividend of EUR1.03 a share.
In early July, Deutsche Wohnen said the offer was "fair and
adequate" and recommended its shareholders accept it. The deal,
worth roughly 19 billion euros ($22.36 billion), would have created
Europe's largest residential real-estate group.
Vonovia said it still believes the merger is "strategically
compelling."
"Vonovia also still regards the offer price of EUR52 per
Deutsche Wohnen share as fair and will carefully consider all
options available to it, including for example the sale of Deutsche
Wohnen shares already owned by Vonovia, the purchase of additional
Deutsche Wohnen shares or the launch of another public offer," it
said.
Write to Olivia Bugault at olivia.bugault@wsj.com
(END) Dow Jones Newswires
July 23, 2021 11:22 ET (15:22 GMT)
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