Sept 19 (Askume) – Shares of German real estate company Deutsche Wohnen (DWNG.DE) rose 25% on Thursday as the company began discussions with a general takeover bid from parent company Vonovia (VNAn.DE) .
Vonovia and Deutsche Wohnen said late Wednesday that they had agreed to start talks.
The agreement includes Vonovia’s offer to Deutsche Wohnen minority shareholders to purchase their shares in exchange for newly issued Vonovia shares. Annual compensation payments are also provided for during the term of the agreement.
Deutsche Wohnen shares were up 20% by 0854 GMT, reaching their highest price in more than two years. Vonovia shares fell 0.9%.
LSEG data shows that Vonovia owns about 87% of Deutsche Wohnen.
