14.12.2015
Deutsche Wohnen AG DE000A0HN5C6
DGAP-News: Deutsche Wohnen AG: Deutsche Wohnen Management Board and Supervisory Board advise shareholders not to accept the Vonovia's offer
DGAP-News: Deutsche Wohnen AG / Key word(s): Statement
Deutsche Wohnen AG: Deutsche Wohnen Management Board and Supervisory Board
advise shareholders not to accept the Vonovia's offer
14.12.2015 / 08:04
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
Deutsche Wohnen Management Board and Supervisory Board advise shareholders
not to accept the Vonovia's offer
- Structure and value of offer is inadequate
- Expected synergies are not achievable, disproportionate to transaction
volume/costs
- Significant discount on medium- and long-term value potential of the
Deutsche Wohnen Group
- Potential of stand-alone company is more promising, strong dilution of
the portfolio and deterioration of profitability to be expected
- Combination would lead to worse financing conditions of Deutsche
Wohnen, tax loss carryforward would diminish significantly
Frankfurt/Main and Berlin, 14 December 2015. The Management Board and the
Supervisory Board of Deutsche Wohnen today published their joint opinion
pursuant to Sec. 27 of the German Securities Acquisition and Takeover Act
(WpÜG) regarding Vonovia's voluntary public takeover bid.
The Management Board and the Supervisory Board are of the opinion that
Vonovia's offer is not in the interest of Deutsche Wohnen, its shareholders
or its employees. The two bodies are therefore advising the shareholders of
Deutsche Wohnen to not accept Vonovia's offer.
The Management Board and the Supervisory Board base their recommendation on
the following considerations in particular:
Unattractive from a financial perspective
- The Management Board and the Supervisory Board consider the structure
and value of the offer consideration to be inadequate. This position is
supported by the advising banks, all of which conclude in their
opinions that from a financial perspective the consideration is
inadequate for the shareholders of Deutsche Wohnen.
- In the view of the Management Board and the Supervisory Board, the
consideration offered in no way reflects the medium- to long-term value
potential of the Deutsche Wohnen Group; compared with this value
potential, the consideration offered constitutes a significant
discount.
- The premium offered with the consideration on the stock price lies
significantly below the premia paid for comparable transactions in the
German residential real estate sector, and even signifies a discount
against the median of analyst target share prices.
- The Management Board and the Supervisory Board believe that only 25
percent of the synergies suggested by Vonovia may in fact be realized.
In addition, the expected synergies are disproportionate to the
transaction volume of EUR 14 billion. The synergies that the Management
Board and the Supervisory Board believe can be realized are furthermore
offset by dis-synergies, which ultimately could lead to negative
effects.
Unattractive from a business perspective
- The strategic focus of Deutsche Wohnen with respect to the portfolio
and financing is highly distinct from the positioning of Vonovia. The
Management Board and the Supervisory Board consider the strategic focus
of the independent Deutsche Wohnen Group and its future prospects to be
far more promising than those of Vonovia or those of the combined
companies.
- Based on the objectives and intentions presented by Vonovia in the
Offer Document, the Management Board and the Supervisory Board are
unable to identify how the offer and a possible consolidation of
Deutsche Wohnen through Vonovia is supposed to improve the position of
shareholders, employees, and tenants or the competitive position of
Deutsche Wohnen.
- Any implementation of the offer results in a dilution of the
high-quality portfolio of Deutsche Wohnen that is focused on Core+
locations. Deutsche Wohnen shareholders who accept the offer, risk
losing parts or all of the Deutsche Wohnen's current valuation premium
because of this dilution.
- The differentiated portfolio strategy focusing on metropolitan areas,
combined with a high concentration and a highly efficient management
organization, results in a higher profitability of Deutsche Wohnen,
which in all likelihood would deteriorate inside the Vonovia
organization.
Other negative effects
- Moreover, a takeover would change Deutsche Wohnen's financing
conditions for the worse. The recent refinancing measure by Vonovia
shows that Vonovia can only refinance itself subject to much worse
financial parameters than Deutsche Wohnen, and that Vonovia, in order
to optimize its interest rate, accepts shorter terms and consequently a
higher risk profile. Taking into account the expected downgrade of
Deutsche Wohnen's credit rating, that would seriously impair Deutsche
Wohnen's risk profile and thus increase its future financing costs.
- Portions of Deutsche Wohnen's existing, significant tax loss
carryforward would be lost, which could negatively impact the financial
and operative development of Vonovia and Deutsche Wohnen permanently.
- Finally, if the offer is accepted, the cash component results in a
partial exit from the investor's investment into real estate; coupled
with Vonovia's different risk profile with regard to the share
component, the Deutsche Wohnen shareholder would lose all of its
previous, sustainable value-creating investment in the event of
acceptance of the offer.
The complete opinion of the Management Board and the Supervisory Board of
Deutsche Wohnen is available on the company website under the following
link: http://ir.deutsche-wohnen.com.
It is expressly noted that the reasoned opinion alone is binding. The
information provided in this press release is not to be understood as an
explanation or supplement to the statements in the opinion.
Deutsche Wohnen
Deutsche Wohnen is one of the largest publicly listed real estate companies
in Germany and Europe with a business focus on managing and developing its
portfolio, which focuses on residential properties. As at 31 September 2015
the portfolio comprised a total of 149,201 units, of which 146,999 are
residential units and 2,202 commercial properties. Deutsche Wohnen is
listed in the Deutsche Börse's MDAX and is also included in the leading
indices EPRA/NAREIT and GPR 100.
Important Note
This publication constitutes neither an offer to sell nor an invitation to
purchase securities.
Insofar as this document contains forward-looking statements, these
statements do not represent any facts and are identified by the words
"become", "expect", "believe", "estimate", "intend", "strive", "assume" and
similar phrases. Such statements express the intentions, opinions or
current expectations or assumptions of Deutsche Wohnen and of the persons
acting in concert with it. The forward-looking statements are based on
current plans, estimates and forecasts which Deutsche Wohnen and the
persons acting in cooperation with it have made to the best of their
knowledge, but which do not claim to be correct in the future.
Forward-looking statements are subject to risks and uncertainties, which
are often very difficult to predict and usually do not lie within the
sphere of influence of Deutsche Wohnen or the persons acting in concert
with the company. It should be taken into account that actual results or
performance to differ materially from those expressed or implied by the
forward-looking statements.
Contact
Phone +49 (0)30 897 86-5413
Fax +49 (0)30 897 86-5419
[email protected]
---------------------------------------------------------------------------
14.12.2015 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
---------------------------------------------------------------------------
Language: English
Company: Deutsche Wohnen AG
Pfaffenwiese 300
65929 Frankfurt am Main
Germany
Phone: +49 (0)30 89786-0
Fax: +49 (0)30 89786-5419
E-mail: [email protected]
Internet: http://www.deutsche-wohnen.com
ISIN: DE000A0HN5C6
WKN: A0HN5C
Indices: MDAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich,
Stuttgart
End of News DGAP News Service
---------------------------------------------------------------------------
423263 14.12.2015
|
Weitere Ad-hoc und Unternehmensrelevante Mitteilungen zu
Deutsche Wohnen AG ISIN: DE000A0HN5C6 können Sie bei EQS abrufen
Immobilien (Wohn) , A0HN5C , DWNI , XETR:DWNI