FRANKFURT (Reuters) - German real estate company Deutsche Wohnen (DWNG.DE) has made an all-share offer for peer LEG Immobilien (LEGn.DE) that puts LEG’s equity value at 4.6 billion euros ($5.2 billion), the companies said in a joint statement on Sunday.
Deutsche Wohnen is offering 33 of its shares for every 10 shares in LEG, it said, adding that this equaled a premium of about 13 percent over the closing price of LEG prior to the announcement.
The combined group will have a portfolio worth about 17 billion euros and the two companies have already signed a business combination agreement, they said.
“That’s an excellent basis from which we can keep growing together and expand our strong position in the European market,” Deutsche Wohnen Chief Executive Michael Zahn said.
Following the merger, former Deutsche Wohnen shareholders will hold 61 percent in the combined group, while former LEG shareholders will own the remaining stake.
As part of the deal, Deutsche Wohnen’s share capital will be increased to up to 549.55 million euros through by issuing 213.13 million ordinary bearer shares at an extraordinary shareholder meeting scheduled for Oct. 28.
Deutsche Wohnen said the offer was subject to a minimum acceptance condition of 50 percent plus 1 LEG share.
($1 = 0.8843 euros)
Reporting by Christoph Steitz; Editing by Georgina Prodhan