Deutsche Wohnen is making moves to take over Austrian residential firm Conwert.
The Berlin-based firm said it intends to take over strategic leadership of Conwert through a share offer.
Deutsche Wohnen’s offer of €11.50 per share has been questioned by some Conwert shareholders.
However, Conwert’s biggest shareholder, the Haselsteiner Familien-Privatstiftung (HFP), endorsed the offer. Conwert investor, Karl Ehlerding, as well as other members of the Ehlerding family, plan to tender the entirety of their shares.
Deutsche Wohnen’s offer is conditional upon a minimum acceptance threshold of 50% + 1% share of all outstanding shares.
Michael Zahn, Deutsche Wohnen chief executive, said that after ”difficult years”, Conwert is facing “major challenges”.
”We want to be a strong partner and reorganize the company financially and operationally,” Zahn said.
Deutsche Wohnen, which currently owns around 149,000 residential and commercial units, said Conwert’s portfolio is a ”good fit” with its strategy.
Conwert’s properties would allow Deutsche Wohnen to expand its managed holdings in metropolitan regions and diversify its portfolio.
Deutsche Wohnen intends to undertake a review of Conwert’s property portfolio, which may lead to a sale of non-core holdings over the short to medium term.
GSW Immobilien was bought by Deutsche Wohnen via a public takeover in 2013. The deal created a merged entity managing a €8.5bn property portfolio.