Vonovia fails with takeover of Deutsche Wohnen
Vonovia's hostile takeover bid to Deutsche Wohnen shareholders has failed. This ends a takeover battle that has kept the German real estate sector on tenterhooks for months.
At the end of September 2015, Deutsche Wohnen announced its intention to take over its competitor LEG. Vonovia then submitted a takeover bid to Deutsche Wohnen. However, this was subject to the condition that Deutsche Wohnen's shareholders first oppose a merger with LEG.
Deutsche Wohnen withdrew its offer for LEG. At an Extraordinary General Meeting of Vonovia on November 30, 2015, around 78 percent of shareholders gave Vonovia the mandate to submit a takeover bid to Deutsche Wohnen shareholders. However, only around 30.4 percent of Deutsche Wohnen shares had been tendered to Vonovia by February 10, meaning that the minimum acceptance threshold of 50 percent for the takeover of Deutsche Wohnen had not been reached. The Management Board of Deutsche Wohnen had vehemently opposed the hostile takeover in recent months.
A merger would have created Germany's largest residential real estate group. As of September 30, 2015, Deutsche Wohnen's portfolio comprised a total of 149,100 units, including 147,000 residential units and 2,100 commercial units. Vonovia SE owns and manages around 367,000 apartments throughout Germany. The portfolio value is around 23 billion euros. (ah)
