FILE PHOTO: An office building of the German property group Deutsche Wohnen is pictured in Berlin, Germany June 2, 2020. REUTERS/Fabrizio BenschDUESSELDORF (Reuters) -Europe’s biggest real estate takeover could fall through — for now — after Germany’s Vonovia warned on Friday that it likely has not secured the backing of enough shareholders in its target Deutsche Wohnen.
The deadline for Deutsche Wohnen shareholders to tender stock passed at midnight on Wednesday and Vonovia needs to collect at least 50% of its rival’s shares for the deal to proceed.
Vonovia said the latest tally indicated it had only received commitments for 47.6%. The deal would create a $22 billion property giant with 550,000 apartments.
“Vonovia continues to view the combination of the two companies as strategically compelling,” the company said.
The offer price of 52 euros per share was fair, Vonovia said, though it would “carefully consider all options available to it”, including the launch of another public offer that would sweeten the deal.
Vonovia said that the tendered shares were still being counted and a result was expected on Monday.
Earlier on Friday, two sources familiar with the matter told Reuters that the deal was at risk of not reaching the 50% target.
One of the people familiar with the matter said some hedge funds, which hold about a third of Deutsche Wohnen’s stock, may not have tendered shares in the hope a deal would eventually go through at a higher price.
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Home » Analysis & Comment » Vonovia says threshold for Deutsche Wohnen deal likely not reached
Vonovia says threshold for Deutsche Wohnen deal likely not reached
DUESSELDORF (Reuters) -Europe’s biggest real estate takeover could fall through — for now — after Germany’s Vonovia warned on Friday that it likely has not secured the backing of enough shareholders in its target Deutsche Wohnen.
The deadline for Deutsche Wohnen shareholders to tender stock passed at midnight on Wednesday and Vonovia needs to collect at least 50% of its rival’s shares for the deal to proceed.
Vonovia said the latest tally indicated it had only received commitments for 47.6%. The deal would create a $22 billion property giant with 550,000 apartments.
“Vonovia continues to view the combination of the two companies as strategically compelling,” the company said.
The offer price of 52 euros per share was fair, Vonovia said, though it would “carefully consider all options available to it”, including the launch of another public offer that would sweeten the deal.
Vonovia said that the tendered shares were still being counted and a result was expected on Monday.
Earlier on Friday, two sources familiar with the matter told Reuters that the deal was at risk of not reaching the 50% target.
One of the people familiar with the matter said some hedge funds, which hold about a third of Deutsche Wohnen’s stock, may not have tendered shares in the hope a deal would eventually go through at a higher price.
Source: Read Full Article