Adler Real Estate shares rise on Ado takeover offer (updated)

Adler Real Estate AG

16/12/2019 09:51

(Adds transaction details, consolidation)
    By Ludwig Burger
    FRANKFURT, Dec 16 (Reuters) - Shares in German property
group Adler Real Estate  ADLG.DE  rose as much as 10.5% on
Monday after an agreed takeover offer by domestic peer Ado
Properties  ADJ.DE  on Sunday that marked further consolidation
in the sector.
    The all-share merger will be followed by another
equity-based acquisition by Ado of residential property
developer Consus Real Estate AG  CC11.DE .
    Ado on Sunday said it would offer equity from a capital
increase to Adler investors at a rate of 0.4164 Ado shares for
each Adler share, valuing the target at 1.03 billion euros 
($1.14 billion) at Friday's closing price. urn:newsml:reuters.com:*:nASN00016Y
    But Adler shares pared gains during Monday morning and were
2.06% higher at 0945 GMT, while shares in suitor Ado slumped
14.3% to their lowest in almost three years.
    The enlarged group, to be named Adler Real Estate Group,
will combine Ado's Berlin-focused residential property with an
Adler property portfolio that is more widely spread across
Germany.
    Ado plans to launch a rights issue worth up to 500 million
euros after the closing of the Adler transaction, expected by
the end of the first quarter of next year.
    Also on Sunday, Ado said it had bought a 22.18% stake in
Consus and secured the rights to an additional 51% from
controlling shareholder Aggregate Holdings.
    That would value all of Consus' equity at close to 1.2
billion euros, also based on Ado's Friday close, though the
slump in Ado shares on Monday puts that valuation in doubt.
    Consus shares surged 12.2% on Monday.
    The group resulting from the three-way merger will have a
rental portfolio of about 8.6 billion euros, seeking cost
synergies to better compete with larger rivals such as Vonovia
 VNAn.DE  and Deutsche Wohnen  DWNG.DE .
    Earlier this year, TLG Immobilien  TLGG.DE  embarked on a
merger with Aroundtown SA  AT1.DE  in an all-share deal to
create a commercial real estate company with 25 billion euros
($27.68 billion) in assets.  urn:newsml:reuters.com:*:nL8N27Z1QP
    That followed a deal by German property group DIC Asset
 DICn.DE  to buy German Estate Group (GEG) for 225 million
euros. urn:newsml:reuters.com:*:nL8N23C1I0
       
($1 = 0.9073 euros)

 (Reporting by Ludwig Burger
Editing by Michelle Martin)
 ((ludwig.burger@thomsonreuters.com; +49 69 7565 1311; Reuters
Messaging: ludwig.burger.thomsonreuters.com@reuters.net))