Vonovia offers to buy out Deutsche Wohnen minority shareholders

Vonovia, a leading German property company, has proposed an offer to acquire full control of its majority-owned subsidiary, Deutsche Wohnen (OTC:DTCWY).

The offer invites Deutsche Wohnen’s minority shareholders to exchange their shares for Vonovia stock at a ratio of 0.7947 Vonovia shares for each Deutsche Wohnen share held. This exchange offer was announced on Saturday.

Currently, Vonovia holds an 86.87% stake in Deutsche Wohnen. The proposed deal places a valuation of approximately €1.21 billion ($1.27 billion) on the remaining stake in Deutsche Wohnen that is neither owned by Vonovia nor by Deutsche Wohnen itself.

This valuation corresponds to €24.67 per Deutsche Wohnen share. The closing price for Deutsche Wohnen’s shares was €24.40 on Friday.

This move comes after Vonovia’s initial majority acquisition of Deutsche Wohnen in 2021. The companies had previously stated in September that they would engage in discussions to establish a control agreement, which would outline both the exchange ratio and the annual compensation payment for the duration of the agreement.

The completion of the takeover is contingent upon the approval of the general shareholders’ meetings of both Vonovia and Deutsche Wohnen. These meetings are slated to take place in January.

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