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Vonovia headquarters in Bochum
Photo: INA FASSBENDER / AFP
The housing group Vonovia warns shareholders of its takeover target of Deutsche Wohnen against failing to pay dividends.
"It is also important for the small shareholders to know that Vonovia, as the majority shareholder in Deutsche Wohnen, will work to ensure that Deutsche Wohnen no longer pays dividends," Vonovia boss Rolf Buch told Reuters.
He had previously submitted his new takeover offer for Deutsche Wohnen, with which he intends to take over more than 50 percent of the shares in the Berlin competitor.
Vonovia most recently failed on this hurdle.
But now Buch has made improvements and is now offering EUR 53 more per share in Deutsche Wohnen.
He brushed speculations on a better offer from the table: "We have made a binding, clear and irrevocable declaration that this will be the last offer."
The Bochumers had submitted their new voluntary takeover offer to the shareholders of the Berlin group on Monday morning.
The offer period is expected to end on September 20, 2021 at midnight.
Vonovia is now offering a total of around 19 billion euros for Deutsche Wohnen, which is primarily active in Berlin.
Deutsche Wohnen boss Michael Zahn and his fellow board members have supported the new offer.
The last takeover attempt at the end of July failed because the group was only able to collect 47.6 percent instead of the required 50 percent of Deutsche Wohnen shares.
Many hedge funds had speculated for more money and withheld their stocks.
Buch now wants to put a stop to such hopes.
Vonovia boss optimistic
The Vonovia boss was optimistic that the new attempt would be successful. "I'm confident it can work now," said Buch. Vonovia has learned the lessons from the failure of the previous takeover offer to Deutsche Wohnen shareholders and is now addressing them better. Vonovia has called in more banks to do this. Morgan Stanley, Perella Weinberg, Bank of America Merrill Lynch and ParkView Partners supported the Bochum company.
"Talks with investors (...) will be intensified this week," announced Buch. Vonovia has also formed joint teams with Deutsche Wohnen for this purpose. "We have learned that a deal that is actually taken for granted can still fail," said Buch. "That is why we try to reach as many investors as possible." However, Deutsche Wohnen shareholders must also be aware that there will be no improved offer and that if the current start-up fails, there will be no mandatory offer. "It's this offer or it's no longer one," said Buch.
Most recently, Vonovia Options secured 0.93 percent of the shares in the Berlin competitor.
"These stocks can be used at the end of the process to lift us above the 50 percent threshold," said Buch.
"Anyone who wants the transaction - and I believe the market wants it - should offer as much as possible as quickly as possible so that we can reach 50 percent," said Buch, who warned at the same time: "If you do not offer the share, you are sitting on a share, which will not pay dividends for years. "
The two real estate giants listed in the leading index Dax own a total of 550,000 apartments valued at more than 80 billion euros, most of them in Germany.
hba / Reuters