Vonovia examines entry into competitor Adler Group

Released on 08.10. 2021

  • The real estate group Vonovia is currently the largest on the German market. Photo: Marcel Kusch

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The takeover of Deutsche Wohnen SE has only just been successful – now the real estate company is considering joining another competitor.

Luxemburg / Bochum (dpa) – The real estate giant Vonovia is examining an entry into the difficult waters of its industry rival Adler Group. In an agreement with the major Adler shareholder Aggregate Holdings, the Bochum-based company secured the right to purchase a share of 13, Acquire 3 percent

If Vonovia withdraws the purchase option, Aggregate’s stake in Adler would be halved. The Adler Group’s share continued to rise after its crash on Wednesday to temporarily below 08 euros.

Vonovia announced on Friday morning that it was granting the purchase option 14 euros per share to be able to exercise for the next 18 months. Without time pressure, you can now check the Adler Group’s real estate portfolio and decide whether or not it makes sense to join Adler.

Allegations of misrepresentation

Short seller and punter Fraser Perring with his investment firm Viceroy had made serious allegations against the company, such as deception and financial misrepresentation. The share price then crashed by a quarter. Adler had denied Viceroy’s accusations “in the strongest possible terms”.

The company emphasized that the assessment of the value of the portfolio and of acquisitions had been carried out by external auditors. In addition, it has now been decided to hire external independent consultants and auditors to carry out a comprehensive review of the allegations.

Several interested parties

The week had already been eventful for Adler investors. The company announced a possible realignment on Monday. Several interested parties had submitted offers for parts of the property company’s rental portfolio, it said. Previously, the share price had fallen significantly in September and had lost almost 35 percent in that month, although management raised profit targets at the end of August would have. At the beginning of this year the share was worth almost 18 Euro.

The Adler Group emerged from a merger of Ado Properties, Adler Real Estate and the Berlin project developer Consus Real Estate. The combined company was then renamed the Adler Group and has its operational headquarters in Berlin.

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