Vonovia Makes Buyout Offer to Deutsche Wohnen's Minority Shareholders

Germany's leading real estate company Vonovia has made an offer to take full control of its majority-owned subsidiary Deutsche Wohnen. The offer invites Deutsche Wohnen's minority shareholders to exchange each Deutsche Wohnen share for 0.7947 Vonovia shares. This exchange proposal was announced on Saturday.

Currently, Vonovia holds an 86.87% stake in Deutsche Wohnen. The proposed deal values the remaining stake not owned by Vonovia or Deutsche Wohnen at approximately €1.21 billion ($1.27 billion). This valuation corresponds to €24.67 per Deutsche Wohnen share. Deutsche Wohnen's shares closed at €24.40 on Friday.

This move comes after Vonovia initially acquired a majority stake in Deutsche Wohnen in 2021. The companies had previously announced in September that they would begin negotiations to establish a control agreement defining both the exchange rate and annual compensation payments to be made during the transaction period.

The completion of the acquisition is subject to the approval of both Vonovia and Deutsche Wohnen’s general shareholder meetings, which are scheduled to take place in January.