Vonovia strengthens presence in Sweden
- Agreed acquisition of a majority stake in Swedish residential company Hembla from Blackstone
- Second step into the Swedish market following the acquisition of Victoria Park in 2018
- Acquisition of 69.30% of the voting rights and 61.19% of the share capital in Hembla at a total value of approximately SEK 12.225bn (approximately EUR 1.14bn)
Bochum/Stockholm, 23 September 2019 – Vonovia SE today agreed with the majority owner of Hembla AB (publ), funds advised by The Blackstone Group Inc., to acquire their 69.30% of the voting rights and 61.19% of the share capital in the Stockholm-based company.
Vonovia’s CEO Rolf Buch said: “We are long-term investors in residential housing and offer attractive and high-quality living. Since we acquired Victoria Park last year, we have found that our strategy to deliver high quality living standards to our tenants has the full support of our Swedish colleagues. Our investment in Hembla is fully complementary to our present footprint. We have a track record of creating benefits for tenants and shareholders alike, and we achieve this through our long-term expertise, our comprehensive services, better procurement and better funding. With this sustainable and very long-term course, we are living up to our social responsibility.”
This is Vonovia’s second step into the Swedish market following the acquisition of Victoria Park in 2018. Vonovia will be obliged to launch a mandatory public offer to all other shareholders of Hembla in accordance with the Swedish takeover rules within a period of four weeks from clearance of the transaction by the merger control authorities.
Hembla’s 21,411 flats are primarily based in Stockholm and are highly complementary to Victoria Park’s 16,638 flats that are mainly based in the areas of Malmö, Stockholm, and Gothenburg.
Vonovia owns 396,739 residential flats in Germany, Austria and Sweden and also manages 79,015 apartments. Its portfolio is worth approximately EUR 47.4 billion. The company began to grow beyond Germany in 2017, with two acquisitions in Austria and the acquisition of Victoria Park in 2018.
Vonovia’s long-term strategy puts the tenant in the centre of all business activity. As a modern service company, Vonovia focuses on customer orientation and tenant satisfaction. Offering tenants 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 roots of Vonovia’s business go back well into the last century, when residential homes were built for workers and civil servants. Since Vonovia’s listing in 2013, the company’s strategy has been to focus on a long-term and sustainable business geared to the well-being of tenants.
Mandatory public offer obligation for Hembla’s remaining shares expected to be triggered in October/November 2019
Vonovia has agreed with funds advised by The Blackstone Group to buy 6,136,989 class A shares and 50,722,985 class B shares in Hembla. Hembla’s class B shares are listed on Nasdaq Stockholm, Mid Cap. The parties agreed to a purchase price per share of SEK 215 (regardless of share class), corresponding to a premium of 11.5% compared to the closing price for the class B shares on Nasdaq Stockholm on 20 September 2019 and a premium of 15.6% compared to the volume-weighted average share price on Nasdaq Stockholm in the last three months. The total purchase price for all shares in the transaction is approximately SEK 12.225bn (which as of today corresponds to approximately EUR 1.14bn).
Closing of the transaction is subject to antitrust clearance by the Swedish merger control authorities. With completion of this condition, which is expected in October or November 2019, Vonovia is obliged to launch a mandatory public offer for the remaining shares in Hembla. The offer shall, according to the Swedish Takeover Act, be launched within four weeks from when the transaction becomes unconditional. Following the relevant board resolutions, Vonovia will launch the offer within the relevant time frame set out in the Takeover Act, and on terms compliant with Swedish takeover rules.