Germany’s publicly listed residential property companies Deutsche Wohnen SE and Vonovia SE have signed an agreement to combine the two companies.
The business combination will create Europe’s largest residential real estate group with a combined market capitalisation of currently around €45 billion and more than 500,000 apartments with a combined real estate value of approx. €90 billion, said Deutsche Wohnen in a statement.
“The market environment has become increasingly similar for Vonovia and Deutsche Wohnen in recent years. Now is the right moment to combine the proven performance and strengths of both companies. Together we will create new perspectives for our employees, our tenants and our owners,” said Michael Zahn, CEO of Deutsche Wohnen.
Vonovia has announced to launch a voluntary public takeover offer for all outstanding shares in Deutsche Wohnen. Shareholders receive a total of 53.03 euros, consisting of an offer price of 52.00 euros in cash per share and a cash dividend of 1.03 euros per Deutsche Wohnen share proposed to the Annual General Meeting of Deutsche Wohnen on June 1, 2021.
This corresponds to a premium of 17.9 % on the closing price of Deutsche Wohnen on May 21, 2021 and of 25.0 % on the weighted average price of Deutsche Wohnen shares over the last three months up to May 21, 2021, thus valuing Deutsche Wohnen at approx. 18 billion euros (on undiluted basis).
The combined company is to operate under the name “Vonovia SE”.
Through the combination, Deutsche Wohnen and Vonovia aim to create a tenant-oriented and socially responsible housing company that can reliably contribute to necessary solutions, especially for the Berlin housing market, in close partnership with politics.