Buwog agrees to be taken over by Vonovia in $6.1 billion deal

Martin Leissl | Bloomberg | Getty Photos

An indication stands exterior the headquarter places of work of Vonovia SE in Bochum, Germany, on Thursday, Feb. 11, 2016. Vonovia didn’t get sufficient shares to amass Deutsche Wohnen AG after a four-month takeover battle between Germany’s largest property corporations, ending what would have been the most important ever deal within the nation’s actual property business.

Germany’s Vonovia has agreed to purchase Buwog in a money deal valuing the Austrian actual property firm at 5.2 billion euros ($6.12 billion), the 2 corporations mentioned on Monday.

The deal will additional develop Vonovia’s portfolio of residential properties to nearly 400,000 flats from round 350,000 now, cementing its place as Germany’s main property group and including additional properties in Austria.

Buwog shareholders are to be provided 29.05 euros per share below the supply, an 18.1 p.c premium to Friday’s closing worth, which Vonovia mentioned it might finance with debt capital.

Vonovia may even supply 115,753.65 euros in money for every excellent bond convertible into Buwog shares throughout the preliminary acceptance interval and a lowered worth throughout a further three-month acceptance interval.

Vonovia mentioned it anticipated joint administration of the 2 corporations’ flats following the deal would result in value financial savings of round 30 million euros a 12 months, a considerable a part of which is to be realised by the tip of 2019.

The deal may even have a constructive impact on Vonovia’s underlying earnings per share and adjusted web asset worth per share, Vonovia mentioned.

Additional particulars of the supply are to be introduced in February.

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