Germany's largest residential company Vonovia has launched a mandatory offer for the remaining shares it does not already own in listed Swedish residential firm Hembla.
The bid comes just a few days after Vonovia received the green light from the competition authorities to become the biggest residential firm in Sweden. Under the deal, Vonovia acquired 71.7% of the voting rights (64.2% of the share capital) of listed firm Hembla from Blackstone.
As part of the tender bid, which runs until Dec 9, Vonovia is offering SEK 215 in cash per B-share, the same price it recently paid for its majority stake.
Vonovia said that it intends to leave in place Hembla's existing dividend policy of paying no dividend to its shareholders in the coming years, since investments in the existing properties provide a good return. 'This is very much in line with Vonovia's business philosophy of being a long-term investor and holder of properties,' the company said in a statement.
The offer represents a premium of 11.5% compared to the closing price for Hembla's B-shares on Nasdaq Stockholm on 20 September 2019 (the last trading day before the transaction with Blackstone was announced). The total value for all shares in Hembla amounts to approximately SEK 20 bn.
'We offer all shareholders a full and final price at an attractive premium,' said Rolf Buch, CEO of Vonovia.
The move marks Vonovia's second step into the Swedish market after acquiring residential company Victoria Park in 2018.
Through Victoria Park's and Hembla's portfolios, Vonovia becomes the largest landlord in Sweden, owning around 38,000 residential units and gaining exposure to Sweden's three largest cities Stockholm, Gothenburg and Malmö.
Vonovia says it is committed to the Swedish market and will focus on expansion and further investment in Hembla's properties.
The housing giant currently owns around 395,600 residential units across Germany, Austria and Sweden. In addition, it manages around 78,350 apartments on behalf of third parties. In total, its portfolio is worth approximately €47.8 bn.
The Bochum-based company has been listed on the stock exchange since 2013 and on the DAX 30 since September 2015. Vonovia SE is also listed on the international indices STOXX Europe 600, MSCI Germany, MSCI Germany, GPR 250 and EPRA/NAREIT Europe.
