Vonovia details compensation plan for Deutsche-Wohnen shareholders
Ready for the Lowdown on Vonovia's Full Acquisition of Deutsche Wohnen?
Vonovia, the real estate juggernaut, has set the wheels in motion for its complete takeover of subsidiary Deutsche Wohnen and the ousting of the remaining shareholders. The company has laid out the compensation plan for the non-controlling shareholders under the proposed domination and profit-and-loss transfer agreement. Deutsche Wohnen shareholders can expect to receive 0.7947 Vonovia shares per share, with the added bonus of an annual compensation payment of €1.22 gross per share for each full financial year, pending the approval of a court-appointed contract auditor.
In September, Vonovia announced its intentions to seal a domination and profit-and-loss transfer agreement for Deutsche Wohnen. However, the ball is still in play, as the annual general meetings of both companies are yet to approve this.
The shares of both companies saw a dip on Monday afternoon, with Vonovia shares down around 4% and Deutsche Wohnen shares down roughly 3%.
Shareholder representatives have thrown in their two cents. Daniel Bauer from the Association for the Protection of Shareholders (SdK) remarked to "Handelsblatt" that the exchange ratio seems reasonable, yet the compensation payment appears low.
Back in October 2021, Vonovia bagged Deutsche Wohnen for approximately €19 billion in its third bid for the competitor.
As of our latest information, Vonovia SE started the process to fully take over Deutsche Wohnen SE, offering compensation to non-controlling shareholders in the form of shares in Vonovia SE or an annual compensation payment, depending on the final terms of the agreement upon its full implementation. Although Vonovia controlled 87.6% of the voting rights of Deutsche Wohnen SE, the final details of the compensation for non-controlling shareholders are yet to be ironed out[1][4].
Vonovia's proposed acquisition of Deutsche Wohnen, worth approximately €19 billion, involves finance and investing in the real estate business. The compensation plan for non-controlling shareholders under this proposed domination and profit-and-loss transfer agreement includes receiving 0.7947 Vonovia shares per share, along with an annual compensation payment of €1.22 gross per share for each full financial year, pending court approval.
