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Conwert recommends accepting Vonovia takeover offer in cash
December 1, 2016 / 11:50 AM / in a year

Conwert recommends accepting Vonovia takeover offer in cash

VIENNA (Reuters) - Conwert CONW.VI recommended on Thursday its shareholders accept the takeover offer by larger German rival Vonovia (VNAn.DE) in cash unless Vonovia’s shares rise significantly.

The logo of Austrian properties group Conwert is pictured at its headquarters in Vienna, Austria, March 9, 2016. REUTERS/Heinz-Peter Bader/File Photo

Conwert shareholders can choose to receive 16.16 euros ($17.17) cash per share or 74 Vonovia shares for every 149 Conwert shares, which implies a price of 17.58 euros per Conwert share based on the closing price of the day before the offer was announced.

Shares in Vonovia traded at around 30.17 euros on Thursday, implying an offer price of around 15 euros per Conwert share, below Wednesday’s closing price of 16.17 euros.

The offer runs until Dec. 19 and is contingent on Vonovia getting at least 50 percent of Conwert’s stock.

Vonovia said last month it did not need to raise fresh capital for the takeover project even if all Conwert shareholders accept the cash offer, which would cost Vonovia around 1.65 billion euros.

Vonovia said last month that it did not need to raise fresh capital for the takeover project even if all Conwert shareholders accept the cash offer, which would cost Vonovia around 1.65 billion euros ($1.75 billion).

Germany’s Adler Real Estate (ADLG.DE), which holds around 26 percent of Conwert, has said it would accept the share exchange offer.

Adler on Thursday refuted allegations by the Austrian competition watchdog that it acted in concert with other shareholders when it bought Conwert shares and thus should have made a takeover offer.

Reporting By Shadia Nasralla; editing by Francois Murphy and David Evans

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