I=10
Vonovia offers an exchange ratio of 0.7947 and gross annual fixed payment of 1.22, sdk satisfied with the offer price and not the annual compensation
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Vonova is offering 0.7947 Vonovia shares for each Deutsche Wohnen share.
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Minority shareholders who don’t exchange their shares will receive a fixed annual payment of EUR 1.22 per share (EUR 1.03 net)
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The shareholders of Deutsche Wohnen and Vonovia will approve or reject the offer on January 23 and 24 respectively.
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Daniel Bauer, chairman of the Association for the Protection of Capital Investors (SdK), said they are satisfied with only the offer price and not the fixed annual payment.
“At first glance, the exchange ratio appears to be in line with expectations,” he told Handelsblatt. “The compensation payment of 1.22 gross per share, however, is below the SdK’s expectations and appears to be a little too low at first glance.”
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He, however, pointed out that they can’t provide a final assessment since many details are still missing.
“A final assessment is not really possible at this point in time.” The reports will be looked at, and only once the planning assumptions are known can a serious statement be made. “But that will certainly take about two weeks after the report is published.”
Assessment
The exchange ratio is below our expectations of 1:1. However, the annual net dividend rate of 4.22% based Dt. Wohnen’s closing price on Friday this week doesn’t look bad. @moritz based on comments from sdk, there’s a high chance that they will not dispute the offer price, hence I think we should sell the recent 20% stake. But again, given that the exchange ratio will result in an offer price of EUR 24.67 (based on Vonovia’s share closing price of EUR 31.04 on Friday), I don’t see any much harm in waiting for further details on the offer price and comments from the likes of Elliot Investment before taking an action?