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Vonovia SE: Vonovia to Sell its Deutsche Wohnen Shares (news with additional features)

DGAP-News: Vonovia SE / Key word(s): Real Estate

31.01.2019 / 17:45
The issuer is solely responsible for the content of this announcement.


Vonovia to Sell its Deutsche Wohnen Shares

- Vonovia plans to dispose of its ca. 16.8m Deutsche Wohnen shares in the market

- Proceeds will be used to further strengthen the balance sheet

- Positive impact on LTV of approx. 80 bps; no material impact on any other KPI

Bochum, Germany, January 31, 2018 - Vonovia SE has decided to sell its stake in Deutsche Wohnen SE, resulting in the disposal of ca. 16.8m Deutsche Wohnen shares (ISIN DE000A0HN5C6). A group of banks has been mandated to place the shares in the market with institutional investors in an accelerated bookbuilding process.

Vonovia has been a shareholder of Deutsche Wohnen since late 2015/early 2016, when the stake was acquired in a series of share purchases in the market. The aggregate purchase price was EUR 405.3 million reflecting a weighted average purchase price of EUR 24.10 per share.

The closing price for Deutsche Wohnen shares on XETRA on January 31 was EUR 43.59 per share, resulting in an aggregate value of ca. EUR 733.2 million for the stake as of January 31. The price for the sale of these shares will be determined in the accelerated bookbuilt offering process.

"As part of our active balance sheet management and in light of upcoming maturities, including the debt instruments that mature this year and the hybrid bond that becomes callable in April 2019, on the one hand, and the value gain of this minority stake on the other hand, we believe the timing is very suitable to dispose of our holding in Deutsche Wohnen," commented CEO Rolf Buch.

In terms of Vonovia's KPIs the disposal of the Deutsche Wohnen shares is expected to have no material impact on Group FFO or Adj. NAV and to result in an LTV reduction of approx. 80 bps.

About Vonovia

Vonovia SE is Europe's leading housing company. Vonovia currently owns around 400,000 residential units in all attractive cities and regions in Germany, Austria and Sweden. An additional 84,000 or so third-party-owned apartments are also managed by Vonovia. Its portfolio is worth approximately EUR 41.7 billion. As a modern service company, Vonovia focuses on customer orientation and tenant satisfaction. Offering tenants affordable, attractive and livable homes is a prerequisite for the company's successful development. Accordingly, Vonovia makes long-term investments in the maintenance, modernization and senior-friendly conversion of its properties. The company is also creating more and more new apartments by realizing infill developments and adding to existing buildings.

The company, which is based in Bochum, has been listed on the stock exchange since 2013 and on the DAX 30 since September 2015. Vonovia SE is also listed on the international indices STOXX Europe 600, MSCI Germany, MSCI Germany, GPR 250 and EPRA/NAREIT Europe. Vonovia has a workforce of approximately 9,900 employees.

Additional Information:
Approval: Regulated Market/Prime Standard, Frankfurt Stock Exchange
Common code: 094567408
Registered headquarters of Vonovia SE: Bochum, Germany, Bochum Local Court, HRB 16879
Business address of Vonovia SE: Universitätsstrasse 133, 44803 Bochum, Germany

Important Information:
This announcement does not contain or constitute an offer of, or the solicitation of an offer to buy or subscribe for, securities to any person in the United States of America, Australia, Canada, Japan or in any jurisdiction to whom or in which such offer or solicitation is unlawful.

This release is not an offer of securities for sale in the United States of America. Securities may not be offered or sold in the United States of America absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. There will be no public offer in the United States.

In member states of the European Economic Area ("EEA"), this announcement is only addressed to and directed at persons who are 'qualified investors' within the meaning of Article 2(1)(e) of the Prospectus Directive (Directive 2003/71/EC) (as amended, the "Prospectus Directive") ("Qualified Investors"). In the United Kingdom, this announcement is only addressed to and directed at Qualified Investors who are persons (i) who have professional experience in matters relating to investments falling within Article 19(5) (investment professionals) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended, the "Order") or (ii) falling within Article 49(2)(a) to (d) (high net worth companies, incorporated associations, etc.) of the Order.

To the extent this announcement contains predictions, expectations or statements, estimates, opinions and projections with respect to anticipated future performance of Vonovia ("forward-looking statements"), they are based upon current views and assumptions of the Vonovia management, which were made to its best knowledge. Forward-looking statements reflect various assumptions taken from Vonovia's current business plan or from public sources which have not been independently verified or assessed by Vonovia and which may or may not prove to be correct. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors which could cause the earnings position, profitability, performance or the results of Vonovia or the success of the housing industry to differ materially from the earnings position, profitability, performance or the results expressly or implicitly assumed or described in these forward-looking statements. In consideration of these risks, uncertainties and other factors, persons receiving this document are advised not to rely on these forward-looking statements. Vonovia does not assume any liability or guarantee for such forward-looking statements and will not adjust them to any future results and developments.

Information to Distributors
Pursuant to EU product governance requirements, the shares have been subject to a product approval process, under which each distributor has determined that such shares are: (i) compatible with an end target market of retail investors and investors who meet the criteria of professional clients and eligible counterparties, each as defined in MiFID II; and (ii) eligible for distribution through all distribution channels as are permitted by MiFID II. Any distributor subsequently offering the shares is responsible for undertaking its own target market assessment in respect of the shares and determining appropriate distribution channels.

Additional features:

Document title: Vonovia to Sell its Deutsche Wohnen Shares

31.01.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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