Deutsche Wohnen’s executive and supervisory boards are recommending that shareholders accept listed residential landlord Vonovia’s takeover offer which runs until July 21.
‘The offer is fair and adequate and offers Deutsche Wohnen shareholders the opportunity for a secure, timely and fair realization of value,’ the boards said, adding that the deal will create value for ‘all parties and stakeholders’.
The announcement comes just a few days after Vonovia received approval for its takeover of rival Deutsche Wohnen from Germany's Federal Cartel Office, clearing the way for a merger that will create Europe's largest housing group with more than 500,000 apartments.
The new combine would have a Germany-wide market share of under 2%, while at city and municipal level, the combined market shares of the two companies would not cross a critical threshold either.
Vonovia formally launched its voluntary public takeover offer to the shareholders of Deutsche Wohnen last week, who now have until 21 July to accept the bid.
Provided that the remaining closing conditions are met, the takeover offer is expected to be completed at the end of August 2021.
The new combine will take the name of Vonovia and have a market capitalisation of around €45 bn. Its housing portfolio - spread across Germany, Sweden and Austria - will have a total property value of almost €90 bn.
Vonovia is offering €52.00 in cash and a cash dividend of €1.03 per Deutsche Wohnen share. The offer represents a premium of 15.6% on Deutsche Wohnen's closing share price of €44.99 on 21 May, the last day of trading before the offer was announced on 24 May.
