The ad hoc announcement that real estate group Vonovia sent out shortly before the market closed at the end of last week was only a few lines long – but it was difficult. Because the boss of Vonovia, Rolf Buch, had to admit that the planned buyout of a billion euros of competitor Deutsche Wohnen has surprisingly failed. The reason: too few Deutsche Wohnen shareholders accepted Vonovia’s takeover offer. 47.6 percent of shareholders had agreed to the sale of their shares, but at least 50 percent should have done so.
Now the lament is great and the consequences are being discussed – for both companies and for the German housing market, especially in the capital, as Deutsche Wohnen is the largest private landlord in Berlin, with around 114,000 apartments. Berlin Finance Senator Matthias Kollatz announced this weekend that he was still willing to buy thousands of apartments from the two real estate groups – even if the merger of the companies is not taking place now. “We still assume that the two companies will approach the state of Berlin in due course, whether and, if so, how the purchase will go,” the SPD politician said. “We were offered a mixed portfolio. It is now the companies’ turn to inform the country of the validity of the offer.
As part of the planned takeover, the companies had reached an agreement with the Berlin Senate on the sale of around 20,000 homes to the state. Faced with the housing shortage in the capital, the red-red-green government coalition wants to bring as many apartments as possible back into state ownership. It remains to be seen whether this will go as planned, as the sale of the apartment was also intended to get approval for the billion dollar merger in Berlin. A referendum is also underway in the capital with the aim of expropriating Deutsche Wohnen. Vonovia also wanted to commit to limiting annual rent increases to a maximum of 1% per year over the next three years and moving forward with the new building in Berlin. Apparently, regardless of the outcome of the takeover bid, Deutsche Wohnen wishes to adhere to the pact with Vonovia and Berlin, the company said on Friday: “Discussions with the Berlin Senate regarding the sale of a number important to follow. “
Open detailed view
Bad defeat: Vonovia boss Rolf Buch failed with his plan.
(Photo: Jakob Hoff / imago)
After the failure was published, Vonovia announced that she would now consider the next steps. It is therefore possible that the group sells its Deutsche Wohnen shares, buys additional shares or makes a new offer. In addition, the Deutsche Wohnen shares purchased by Vonovia are worth more than they are on the books. “Vonovia continues to believe that a merger with Deutsche Wohnen makes strategic sense and creates added value for the shareholders of both companies,” the group announced.
The financial damage caused by the failure of the recovery is limited, according to Buch: “For example, banks are paid for performance – they don’t get anything now. This is the second time that the takeover of Vonovia has failed. The first time that the board of directors of Deutsche Wohnen resisted.