Deutsche Wohnen Bids for GSW After Investors Approve Share Issue

Deutsche Wohnen AG (DWNI) offered to buy competitor GSW Immobilien AG (GIB) less than a week after its investors approved a plan to issue shares to finance the all-stock acquisition, which would create the second-largest owner of German homes.

Deutsche Wohnen offered 2.55 of its shares for each GSW share, according to a statement today, confirming a plan announced on Aug. 20. The bid values GSW’s equity at about 1.7 billion euros ($2.3 billion), based on Deutsche Wohnen’s closing share price yesterday.

The combined company would own about 150,000 apartments valued at 8.5 billion euros, Deutsche Wohnen said in August. Both companies are based in Berlin, where price and rent increases have outpaced the rest of the country.

GSW shareholders must decide whether to accept the offer by Oct. 30, according to today’s statement. Deutsche Wohnen needs acceptances from investors owning at least 75 percent of GSW shares to proceed with the deal.

At a Sept. 30 meeting in Frankfurt, 99.5 percent of the Deutsche Wohnen investors present voted in favor of issuing shares to be offered in exchange for GSW stock, the company said in a statement the same day.

Deutsche Annington Immobilien SE (ANN) is Germany’s biggest residential landlord by number of homes, with 180,000 apartments.

“A combination of GSW and Deutsche Wohnen could make sense from an operational and industry point of view,” GSW said on Aug. 26.

To contact the reporter on this story: Dalia Fahmy in Berlin at dfahmy1@bloomberg.net

To contact the editor responsible for this story: Andrew Blackman at ablackman@bloomberg.net

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.