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

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

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 During Vonovia's takeover of Deutsche Wohnen in 2021, NAV was used as a valuation method. Likewise, during Deutsche Wohnen-GSW DPLTA in 2014, the valuation expect had to compare the computed enterprise value with NAV to ensure that it was reasonable. Vonovia and Deutsche Wohnen could also employ just NAV during the DPLTA. Since Deutsche Wohnen and Vonovia had a NAV of EUR 42.01 and EUR 44.08 respectively at the end of June 2024, an exchange ratio of 1:1 is possible.
+'''''Vonovia needs to increase its stake to 95% to achieve a squeeze-out of minority shareholders'''''
+The best entry-point for Vonovia [[Deutsche Wohnen:Minority shareholder buyout (DPLTA)#What Happens If Some Shareholders Don.27t Take Part in DPLTA.3F|squeeze-out]] of Deutsche Wohnen minority shareholders would be 95% of voting rights. At 90%, it can only initiate merger squeeze-out which will need merging with Deutsche Wohnen. Since merger agreement and profit and loss agreement (PLTA) won't work hand-in-hand, general corporate squeeze-out which only requires 95% voting rights would be viable. To attain 95% voting rights, Vonovia would have to increase its shares at Deutsche Wohnen by 32 million, another reason it should offer an attractive exchange price.
 === Risks ===