Vonovia, Germany's largest listed residential landlord, is set to add 24,500 homes to its current 338,000-unit portfolio after its €3 bn cash offer for Austrian peer Conwert Immobilien received shareholder backing.
Vonovia and Conwert have announced that take-up of the offer by Conwert shareholders had surpassed the statutory minimum subscription threshold of 50% plus 1 share by the deadline of the acceptance period on 19 December.
This means that Vonovia's takeover of Conwert will likely be approved when the final result is announced on 21 December. As a result, Conwert's 24,500 residential units, mostly in Germany with a smaller amount in Vienna, will be added to Vonovia's portfolio, which was valued at €24 bn on 19 December 2016. Conwert is in the process of disposing of its 'non-core' commercial real estate holdings.
The merger strengthens Vonovia's dominant position in Germany and allows it to gain ground in Vienna, where it will maintain Conwert's headquarters. The Austrian property portfolios will still be managed by Conwert, which will remain listed on the Austrian stock exchange. Last year, Conwert rejected a lower takeover bid from Deutsche Wohnen, at which point Adler bought a 25% stake in Conwert.
Rolf Buch, CEO of Vonovia SE, said: 'The takeover will bring benefits for the shareholders and tenants of both companies. I am looking forward to working with management at Conwert to smoothly integrate our business processes.'
Conwert chairman Alexander Proschofsky added: 'Our shareholders have largely decided to support the merger with Vonovia, thereby further developing the potential of Conwert under a new umbrella.'
The board of the Austrian company had recommended the offer. Conwert shareholders who have not accepted the offer will have a further three-month period, likely to run to 23 March 2017, to tender their outstanding shares.
