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Deutsche Wohnen Makes $5.22B Offer for Leg Immobilien - Land.Net News


Dow Jones September 20, 2015
Deutsche Wohnen AG on Sunday said it plans to offer rival LEG
Immobilien AG a share exchange valuing the company at 4.62 billion euros
($5.22 billion), the latest consolidation move in Germany's real estate
market.
Both companies agreed to the tie-up, and the combined group will have a real
estate portfolio worth about EUR17 billion, they said, with over 250,000
properties.
The voluntary offer involves a share swap in which LEG shareholders can
exchange one share in LEG for 3.3 new shares in Deutsche Wohnen.
"The business combination aims at creating a leading European residential
real estate company, the improvement of the operative performance and the
achievement of synergies," the companies said in a joint news release.
Germany's fragmented residential real-estate sector is in consolidation
mode. Late last year, the country's largest real estate company Deutsche
Annington, now known as Vonovia AG, bought rival Gagfah SA for EUR3.9
billion. In June it also bought property company Sudewo Group for EUR1.9
billion. Vonovia has since replaced specialty chemicals company Lanxess AG
in Germany's blue chip DAX index.
Deutsche Wohnen's last major acquisition took place in late 2013, when it
bought GSW Immobilien.
Deutsche Wohnen's properties are largely in Berlin, and the Rhineland and
Rhine-Main regions. A combination with LEG allows it to expand into North
Rhine-Westphalia, where most of LEG's properties are based.
The companies expect to complete the deal in late December.
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