Vonovia Targets $9 Billion Capital Increase After Deutsche Wohnen Deal
22 November 2021 - 7:57AM
Dow Jones News
By Joshua Kirby
German real-estate company Vonovia SE said it plans to raise
some eight billion euros ($9 billion) through a subscription-rights
issue, with the proceeds going toward the recently agreed-upon
acquisition of peer Deutsche Wohnen SE.
Vonovia said Sunday that it plans to issue just over 200 million
new shares with a notional value of EUR1. The new shares will be
offered to existing shareholders through an indirect subscription
right at a ratio of 20 existing shares to seven new ones, and a
subscription price of EUR40.00, it said. Shares in Vonovia last
closed at EUR55.72.
The capital raise should allow the company to generate gross
proceeds of around EUR8 billion, which will be used to partially
repay a loan taken out to pay for the acquisition of Deutsche
Wohnen. The deal was agreed to last month on Vonovia's third bid of
EUR53 for each Deutsche Wohnen share.
Subject to regulatory approval, the subscription period will
begin Wednesday and last until Dec. 7, both inclusive, Vonovia
said. Any unsubscribed shares will then be sold on the market or
via private placement at a price at least equal to the subscription
price, the company said.
The rights issue is a "shareholder-friendly" means of raising
equity since it allows existing investors to acquire new shares at
an attractive price, the company's chief financial officer, Helene
von Roeder, said.
Write to Joshua Kirby at joshua.kirby@wsj.com;
@joshualeokirby
(END) Dow Jones Newswires
November 22, 2021 01:42 ET (06:42 GMT)
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