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The lettering of the housing company »Vonovia« on the company headquarters in Bochum (archive image)
Photo: Marcel Kusch / dpa
Germany's largest apartment rental company Vonovia has reached the home straight with the takeover of rival Deutsche Wohnen: The Bochum-based group wants to raise around eight billion euros as part of a capital increase and, as announced, finance part of the purchase price. "With this capital increase we are completing the process of the merger with Deutsche Wohnen," said Vonovia CFO Helene von Roeder. Vonovia shareholders can now "obtain new shares at an attractive price" through the capital increase announced in May.
Vonovia wants to issue a good 201 million new shares in order to partially repay a loan to acquire the company, as the Dax group announced.
20 existing shares entitle the holder to purchase 7 new shares via indirect subscription rights for a subscription price of EUR 40 each.
The subscription period for the papers is expected to begin on November 24th and end on December 7th, according to the company.
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Apartments worth more than 80 billion euros
Vonovia secured a majority of 86.7 percent in Deutsche Wohnen in October after several unsuccessful attempts. The two companies together own more than 500,000 apartments valued at more than 80 billion euros, most of them in Germany. Vonovia had spent around 17 billion euros on Deutsche Wohnen shares. "We can now join forces to tackle the major societal and social challenges in the housing market," Vonovia boss Rolf Buch had announced. Buch had to tremble for a long time about the takeover, in the summer the industry giant even missed the majority it was aiming for. It was only when the Bochum group waived all conditions at the decisive attempt that it removed the basis of speculation that it would fail and prevailed.
To finance the deal, Vonovia had secured a bridge loan of just over 20 billion euros.
Now the Bochum-based company initiated the approximately eight billion euro capital increase.
In addition, apartments are to be sold.
In Berlin, the real estate giants are selling around 15,000 apartments for around 2.46 billion euros to the public sector.
tfb / dpa / Reuters
