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Deutsche Wohnen:Minority shareholder buyout (DPLTA): Difference between revisions
Deutsche Wohnen:Minority shareholder buyout (DPLTA) (view source)
Revision as of 12:47, 25 September 2024
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=== Risks === | === Risks === | ||
'''''Vonovia has higher adjusted EBT per share''''' | |||
The stronger adjusted EBT per share is probably the strongest argument for a worse exchange ratio since earnings are used in the Discounted Cash Flow (DCF) to compute the enterprise value of a company. The enterprise value per share is usually compared with the weighted average share price in the last three months up to the day of initiating the DPLTA. The greater between the two is considered the offer price. At the end of 2023, Vonovia and Deutsche Wohnen started reporting adjusted EBT, probably in preparation for the DPLTA. At the end of first half 2024, Vonovia had an adjusted EBT of EUR 887.2 million, or EUR 1.09 per share (page 14, H1 2024 report) while Deutsche Wohnen had adjusted EBT of EUR 281.4 million, or EUR 0.71 per share (page 1, [https://ir-api.eqs.com/media/document/3a9339d7-c228-4340-92f8-47be6cda7cf0/assets/DE000A0HN5C6-Q2-2024-EQ-D-00.pdf?disposition=inline H1 2024 report]). This will result in an exchange ratio of 1:1.42 or 7 shares of Deutsche Wohnen for 5 shares of Vonovia. Based on this, the price that would be offered to minority shareholders would be [https://docs.google.com/spreadsheets/d/1sJK1gqFWHoscwmhzn0MM8XR9U-qdOP6bO6_Qpxn0MRs/edit?gid=1187935610#gid=1187935610&range=B7 EUR 22.99]. | |||
'''''Average weighted stock price 3 months prior to buyout announcement has been relatively low''''' | |||
Deutsche Wohnen's share price in the last three months up to September 18- when the DPLTA was initiated was low. Between June 18 and September 18, the highest price was EUR 23.60 while the lowest was EUR 17.36. That is an average of EUR 20.48<ref>https://www.google.com/search?q=Deutsche+wohnen+share+price&sca_esv=02c44965d6d4b280&sca_upv=1&sxsrf=ADLYWIKBoNMdn0KLB-hoUkpdhMJoY-SfxA%3A1727266605749&ei=Lf_zZr-yLbmI7NYP2tay8QU&ved=0ahUKEwj__N7Did6IAxU5BNsEHVqrLF4Q4dUDCBA&uact=5&oq=Deutsche+wohnen+share+price&gs_lp=Egxnd3Mtd2l6LXNlcnAiG0RldXRzY2hlIHdvaG5lbiBzaGFyZSBwcmljZTIEECMYJzIGEAAYBxgeMgUQABiABDILEAAYgAQYhgMYigUyCxAAGIAEGIYDGIoFMggQABiABBiiBEiFI1AAWIAgcAB4AZABAJgBrAKgAe0eqgEGMi0xNC4xuAEDyAEA-AEBmAIGoALlDJgDAJIHAzItNqAHjVs&sclient=gws-wiz-serp</ref>. | |||
== How Does DPLTA Works? == | == How Does DPLTA Works? == | ||