Press Release

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 € 405.3 million reflecting a weighted average purchase price of € 24.10 per share.

The closing price for Deutsche Wohnen shares on XETRA on January 31 was € 43.59 per share, resulting in an aggregate value of ca. € 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.

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