Vonovia outlines the compensation plans for Deutsche-Wohnen shareholders
Title: Vonovia Issues Timeline for Full Acquisition of Deutsche Wohnen, Details Compensation for Shareholders
In a major real estate shakeup, Vonovia—the property powerhouse—has unveiled the schedule for its complete takeover of Deutsche Wohnen subsidiary and the subsequent squeeze-out of the remaining shareholders. Here's the lowdown on the 411!
Vonovia is dishing out two enticing options for Deutsche Wohnen shareholders reluctant to relinquish their stakes:
- Vonovia's Share Swap Offer: The sizeable real estate conglomerate is calling on external stakeholders of Deutsche Wohnen SE to part ways with their shares, offering Vonovia SE shares in return.
- Annual Compensation: In addition, shareholders can opt for an annual payout for as long as the intercompany control and profit transfer agreement persists. *Note: This option is still subject to the approval of a court-appointed auditor.
On the 18th of September 2024, Vonovia announced its intentions to conclude a domination and profit and loss transfer agreement with the acquired Deutsche Wohnen. Both companies' annual general meetings must still ratify this agreement.
Shareholder representatives remain divided on Vonovia's offering. Daniel Bauer of the Association for the Protection of Shareholders (SdK) mused to "Handelsblatt," "At first glance, the exchange ratio is within anticipation. However, the compensation payment is less than initially expected."
After three attempts, Vonovia sealed the deal with Deutsche Wohnen for approximately €19 billion in late October 2021.
(Note: The enrichment data illustrates that Vonovia's compensation plan offers shareholders two options: either receiving shares in Vonovia SE or accepting an annual compensation payment for the duration of the control and profit-transfer agreement.)
(Note: The agreement's effectiveness is pending its entry into the commercial register of Deutsche Wohnen SE, as there's an ongoing annulment action against the resolution.[1])
On Monday afternoon, Vonovia shares were trading around 4% in the red, while Deutsche Wohnen shares were taking a hit, clocking in at around 3% lower. Stay tuned for updates on this tantalizing real estate saga!
- Vonovia has outlined two options for Deutsche Wohnen shareholders who are hesitant to surrender their shares: accepting Vonovia SE shares in a share swap or receiving an annual payout as long as the intercompany control and profit transfer agreement remains in effect.
- The ratio of Vonovia SE shares in the share swap offer is currently within expectations, but the compensation payment is lower than initially anticipated, as noted by Daniel Bauer of the Association for the Protection of Shareholders.
- Vonovia announced its intent to conclude a domination and profit and loss transfer agreement with Deutsche Wohnen on the 18th of September 2024, subject to the approval of both companies' annual general meetings.
- In October 2021, Vonovia completed a €19 billion takeover of Deutsche Wohnen following three attempts, with the negotiations heavily influencing the finance and investing landscape of the real estate business.
