Frankfurt-based listed residential housing association Deutsche Wohnen’s board has finalised a capital increase against cash contribution and rights for the shareholders.
The fresh capital of €51.15m will be increased by up to €43,842,858 to up to €146,142,858 against cash contributions. Some 43,842,858 shares will be issued. The subscription period starts on 12 June 2012 and ends on 25 June 2012. The share price as well as the final issue volume has yet to be agreed on.
The company is looking to achieve total issue proceeds from the capital increase of €425m to €475m. About 75% of net issue proceeds will be used for the funding of the planned acquisition of BauBeCon Group. The remaining capital will be used to carry out additional purchases which are already being negotiated.
Michael Zahn, chairman at Deutsche Wohnen AG, said: “Deutsche Wohnen is on a strong expansion course. At the end of May, our bid for the 23,500-unit BauBeCon portfolio was accepted.”
The BauBeCon properties are in Berlin, Rhein-Main and Hannover/Braunschweig/Magdeburg.
Credit Suisse and UBS Investment Bank have been appointed as joint global coordinators and joint bookrunners. Bayerische Landesbank, DZ Bank AG Deutsche Zentral-Genossenschaftsbank, Kempen & Co and UniCredit Bank will act as Co-Lead Managers.
