GSW reacts positively to Deutsche Wohnen takeover bid

Listed Berlin home-owner GSW Immobilien has said that the €1.7 bn takeover bid launched by peer Deutsche Wohnen 'could make sense'.

GSW confirmed on Monday that it is in the process of analysing the offer which was announced last week.

A prerequisite for the offer is that the shareholders of Deutsche Wohnen approve the necessary capital increase at an extraordinary meeting of shareholders scheduled for 30 September 2013.

GSW said it had a focused growth strategy and continually analyses future developments in the residential real estate sector and potential consolidation within this space. 'Against that background, a combination of GSW and Deutsche Wohnen could make sense from an operational and an industry point of view,' the company said in a statement.

'GSW is in the process of thoroughly analysing the proposed offer. With regard to certain key aspects of the offer further clarification is required,' the company said.

GSW has engaged Goldman Sachs, Citigroup and Kempen & Co as financial advisors, as well as Hengeler Mueller as legal advisor.

'In the course of the review of the offer GSW together with its advisors will clearly focus on its shareholders’ as well as all other relevant stakeholders’ interests, in particular the ones of its employees,' GSW added.