DGAP-News: GSW Immobilien AG: GSW and Deutsche Wohnen agree on the principles for a business combination
(firmenpresse) - DGAP-News: GSW Immobilien AG / Key word(s): Offer/Statement
GSW Immobilien AG: GSW and Deutsche Wohnen agree on the principles for
a business combination
14.10.2013 / 18:27
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GSW and Deutsche Wohnen agree on the principles for a business combination
- The Management Board and the Supervisory Board of GSW recommend to the
shareholders to accept the takeover offer of Deutsche Wohnen
- A Business Combination Agreement creates the basis for a fair and
socially acceptable integration
- Retention of as many jobs as possible as common goal
- From financial year 2014 onwards, the dividend of Deutsche Wohnen shall
be increased to approximately 60 percent of the relevant earnings
figure FFO (Funds from Operations before sales)
Berlin, 14 October 2013. Today, GSW Immobilien AG and Deutsche Wohnen AG
agreed on the principles for a business combination of the two companies.
The Business Combination Agreement (BCA) creates the framework for a fair
and socially acceptable integration. The Management Board and the
Supervisory Board of GSW support the takeover offer of Deutsche Wohnen. In
their joint statement issued pursuant to sec. 27 of the German Securities
Acquisition and Takeover Act (WpÜG), the two corporate bodies of GSW
recommend to the shareholders of the company to accept the exchange offer
of Deutsche Wohnen. The Management Board and the Supervisory Board consider
the exchange ratio of 2.55 Deutsche Wohnen shares for each GSW share as
fair from a financial point of view. Goldman Sachs has provided the
Management Board and the Supervisory Board with a fairness opinion
supporting this assessment.
'We consider the business combination as a convincing opportunity to pool
the strengths of the two companies and to develop them with the aim to
create additional value. This step makes sense from an operational and
industrial point of view,' explain the two Co-CEOs of GSW Immobilien AG,
Jörg Schwagenscheidt and Andreas Segal. 'However, it was important for us
to reach clarity regarding a robust integration strategy as well as
regarding the effects of the transaction on employees and shareholders.
This has been achieved through a constructive dialogue with the management
of Deutsche Wohnen during the past weeks. The Business Combination
Agreement forms a stable and robust foundation for the business combination
of GSW and Deutsche Wohnen.'
Employees as basis for future success
In the Business Combination Agreement, GSW and Deutsche Wohnen have
reaffirmed their common understanding that the dedicated workforce is the
basis for the present and future success of the combined group. In the
context of the business combination, redundancies shall only occur if
ongoing personnel surpluses are identified despite the continuous dynamic
growth by the company. Against this background, it will be reviewed whether
functions that have been outsourced in the past can be insourced again in
the future. Insofar as redundancies on operational grounds are inevitable,
these shall take place under socially acceptable conditions.
Joint integration committee will manage the business combination
It is intended to appoint the two Board Members of Deutsche Wohnen, Michael
Zahn and Lars Wittan, as Board Members of GSW. Michael Zahn will assume the
position of CEO. At thesame time, Jörg Schwagenscheidt as Chief Operating
Officer (COO) and Andreas Segal as Chief Financial Officer (CFO) shall join
the Management Board of Deutsche Wohnen. The four Board Members will form
an integration committee which will jointly coordinate the combination of
the businesses of GSW and Deutsche Wohnen taking into account the Business
Combination Agreement.
In particular, GSW and Deutsche Wohnen have agreed on an integration
project starting with a six-month conception phase. Each subproject shall
be led jointly by one employee from each of GSW and Deutsche Wohnen. The
objective is to carry out an analysis of the relevant processes,
operational procedures and organizational structures of both companies with
an open outcome. The selection of employees shall be made in accordance
with the 'best-in-class' principle. This ensures that for each function the
best and most suitable employee will be identified.
In case of a business combination, the new group will continue to pursue
its previous growth strategy with a focus on Berlin but also in other
dynamic regions. This also provides a clear signal of continuity to
customers. GSW and Deutsche Wohnen already apply similar operational
business models to carry out their activities and to rely on a long-term
management of their properties. Following the business combination,
Deutsche Wohnen shall increase its dividend payments from financial year
2014 onwards to approximately 60 percent of the relevant earnings figure
FFO (Funds from Operations, before sales), which will be for the benefit of
GSW shareholders accepting the offer as well.
In connection with the transaction, the company is supported by Goldman
Sachs AG, Citigroup Global Markets Deutschland AG and Kempen&Co Corporate
Finance B.V. as financial advisers and Hengeler Mueller as legal adviser.
The full text of the joint statement of the Management Board and the
Supervisory Board of GSW Immobilien AG will be published on 15 October
2013. During the course of tomorrow, it will be available on the company's
website at www.gsw.de under 'Investor Relations'. In addition, the
statement will be available for distribution free of charge by contacting
GSW Immobilien AG (Address: Charlottenstr. 4, 10969 Berlin, Germany, Fax:
+49 30 2534 233 1960, E-Mail: ir(at)gsw.de). An announcement to this effect
will be published in the Federal Gazette (Bundesanzeiger) on Tuesday, 15
October 2013.
Contact
GSW Immobilien AG
Charlottenstraße 4, D-10969 Berlin
Germany
Investor Relations
RenéBergmann
Email: rene.bergmann(at)gsw.de
ir(at)gsw.de
Tel.: +49. (0) 30. 25 34-1362
Fax: +49. (0) 30. 25 34-233 1960
Press
Hans G. Nagl - FTI Consulting
Email: hans.nagl(at)fticonsulting.com
Tel.: +49. (0) 69. 92037-116
Mobile: +49. (0) 170 639 539 1
Thomas M. Krammer - FTI Consulting
Email: thomas.krammer(at)fticonsulting.com
Tel.: +49. (0) 69. 92037-183
Mobile: +49. (0) 151 122 63834
About GSW
With a portfolio of approximately 60,000 residential and commercial units,
GSW Immobilien AG, founded in 1924, is a leading listed real estate company
in Berlin. GSW's corporate strategy is targeted at the long-term management
of rental properties, applying a systematic approach aimed at increasing
both customer satisfaction and operating efficiency. As per 31 December
2012, the company's property portfolio was valued at around 3.3 billion
Euros.
End of Corporate News
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14.10.2013 Dissemination of a Corporate News, transmitted by DGAP - a
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The issuer is solely responsible for the content of this announcement.
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Language: English
Company: GSW Immobilien AG
Charlottenstraße 4
10969 Berlin
Germany
Phone: 030 68 99 99 0
Fax: 030 68 99 99 999
E-mail: kundenservice(at)gsw.de
Internet: www.gsw.de
ISIN: DE000GSW1111
WKN: GSW111
Listed: Regulierter Markt in Berlin, Frankfurt (Prime Standard);
Freiverkehr in Düsseldorf, Hamburg, Hannover, München,
Stuttgart
End of News DGAP News-Service
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234597 14.10.2013
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Datum: 14.10.2013 - 18:27 Uhr
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