Kempen is pleased to announce the successful €1.0 billion capital increase for Vonovia through an accelerated bookbuild offering finalised yesterday
Transaction highlights
Equity placement of 26 million primary shares at €38.30 per share, equal to c.5% of pre-deal outstanding share capital
The offer price represented a 3.0% discount over the last closing price (adjusted for dividend)
Gross proceeds amount to €1.0 billion which will be used to fund Vonovia’s contemplated acquisition of Victoria Park as announced pre-market opening on 3 May 2018
An ‘orderbook covered message’ was communicated c.45 minutes after start of bookbuilding
Allocations of the orderbook comprising more than 100 lines were skewed to existing shareholders and long only investors with the top 10 accounts taking c.50% of the deal
The new shares don’t carry dividend entitlement for 2017 and, following Vonovia’s AGM on 9 May 2018, will commence trading under a separate ISIN code on 10 May 2018; after payment of the 2017 dividend, the new shares and existing shares pre-capital increase will be merged into one trading line on 14 May 2018
Kempen generated substantial demand with a strong focus on US and European real estate specialist investors as well as momentum players
Kempen acted as Joint Bookrunner in the transaction
Company description
Vonovia SE is Germany’s leading residential real estate company, owning a €39 billion portfolio consisting of almost 394,000 residential units in Germany and Austria
On 3 May 2018, Vonovia announced its public offer to acquire the Swedish residential real estate company Victoria Park which, after the German/Austrian acquisitions of conwert and BUWOG, means entering a new geography for Vonovia
Victoria Park is a leading player in the Swedish market with a high quality portfolio of c.14,000 residential units with many similarities to Vonovia