ADO Properties to acquire control of peer Consus Real Estate

Adler Real Estate AG

29/06/2020 07:19

FRANKFURT, June 29 (Reuters) - German property group ADO
Properties  ADJ.DE  exercised options to acquire control of
domestic peer Consus Real Estate  CC11.DE , following through
with the second step of a three-way merger creating one of
Europe's largest listed property groups.
    ADO said on Monday it would now launch a tender offer at
0.2390 ADO shares for each Consus share, already having received
irrevocable commitments from investors to get more than 80% in
Consus.
    ADO, Consus and the third merger partner Adler Real Estate
late last year announced a deal to form Europe's fourth largest
listed property firm, seeking cost synergies to better compete
with larger rivals such as Vonovia  VNAn.DE  and Deutsche Wohnen
 DWNG.DE .
    Upon completion of developer Consus' pipeline, ADO's
portfolio will grow to 14 billion euros, with two thirds of the
properties located in Germany's top seven cities, ADO said,
adding that the transaction is expected to generate synergies of
90-104 million euros by the end of 2021.
    ADO is planning a 450 million euros rights issue in the
third quarter and intends to cancel the dividend for 2019. As a
result of the merger and the rights issue, ADO is expected to
become a candidate for inclusion in Germany's mid-cap index
 .MDAXI , the group said. 
     

 (Reporting by Arno Schuetze
Editing by Paul Carrel)