Deutsche Wohnen:Minority shareholder buyout (DPLTA): Difference between revisions

Deutsche Wohnen:Minority shareholder buyout (DPLTA) (view source)

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 According to insights<ref>https://forum.investmentwiki.org/t/german-real-estate-market/150/13</ref>, the German real estate sector is beginning to stabilize. This will likely boost real estate shares in the near future. As such, Vonovia will likely offer an attractive offer in order to avoid squeezing out minority shareholders in future at a higher price.
-'''''Vonovia would want to avoid one billion euros state tax by increasing its stake to 90%'''''
+'''''State tax triggered by hitting 90% threshold a reason to complete DPLTA fast'''''
-To achieve a squeeze-out, Vonovia's voting rights in Deutsche Wohnen would need to exceed 90%. This will result in [[Deutsche Wohnen:Minority shareholder buyout (DPLTA)#What Happens If Some Shareholders Don.27t Take Part in DPLTA.3F|1 billion euros]] state tax. I assume that Vonovia would want to avoid this until there is a complete pick up in the German real estate sector. Hence the best thing to do is offer attractive compensation that will likely lead to elimination of all minority shareholders at the DPLTA stage.
+Vonovia currently has 86.87% stake in Deutsche Wohnen, hence short of 3.13% to trigger the [[Deutsche Wohnen:Minority shareholder buyout (DPLTA)#What happens when the 90.25 is reached.3F|real estate tax]]. Since the DPLTA will push Vonovia shares upward, there is a high chance that this threshold will be hit. I estimate that Vonovia will pay around [https://docs.google.com/spreadsheets/d/1sJK1gqFWHoscwmhzn0MM8XR9U-qdOP6bO6_Qpxn0MRs/edit?gid=1187935610#gid=1187935610&range=B26 EUR 487 million] real estate tax once it crosses this threshold. Given Vonovia's current financial situation, it will probably borrow money to pay this tax. Therefore, the faster it completes the DPLTA, the sooner it can use Deutsche Wohnen's cash to pay the debt.
 '''''Deutsche Wohnen's NAV is closer to that of Vonovia'''''