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Vonovia To Buy Deutsche Wohnen In EUR 18 Bln Deal

Vonovia SE and Deutsche Wohnen SE signed an agreement to combine the two companies.
Vonovia will launch a voluntary public takeover offer for all outstanding shares in Deutsche Wohnen.

Deutsche Wohnen Shareholders will receive a total of 53.03 euros, consisting of an offer price of 52.00 euros in cash per share and a cash dividend of 1.03 euros per Deutsche Wohnen share proposed to the Annual General Meeting of Deutsche Wohnen on June 1, 2021.

The offer price corresponds to a premium of 17.9% on the closing price of Deutsche Wohnen on May 21, 2021, thus valuing Deutsche Wohnen at about 18 billion euros.
The combined company is to operate under the name "Vonovia SE".

Deutsche Wohnen and Vonovia have also agreed that they will abstain from operations-related redundancies with effect from a date prior to December 31, 2023 in connection with the transaction.

The registered office of the combined company is to remain in Bochum after the merger, with the combined company being managed from Bochum and Berlin.

Michael Zahn, CEO of Deutsche Wohnen, is to be appointed Vice Chairman of the Executive Board and Philip Grosse, CFO of Deutsche Wohnen, is to be appointed Chief Financial Officer of Vonovia. Furthermore, an Executive Committee is to be formed below the Management Board, to which Henrik Thomson, CDO of Deutsche Wohnen, and Lars Urbansky, COO of Deutsche Wohnen, will be long.

After completion of the takeover offer, two persons are to be appointed to the Supervisory Board of Vonovia, upon recommendation by Deutsche Wohnen to the Supervisory Board of Vonovia prior to completion of the transaction.

In addition, Michael Zahn and Helene von Roeder, CFO of Vonovia, are to become members of the Supervisory Board of Deutsche Wohnen.

According to Vonovia, the takeover offer is expected to be completed by the end of August. The planned takeover offer is subject to a minimum acceptance threshold of 50 % of the outstanding shares of Deutsche Wohnen, the granting of merger control clearance and other customary closing conditions.

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