Proxy adviser ISS backs investigation into Deutsche Wohnen loan to Vonovia (updated)

Deutsche Wohnen SE

30/05/2023 16:05

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       BERLIN, May 30 (Reuters) - Proxy adviser Institutional
Shareholder Services (ISS) backs a call by activist investor
Elliott for a special investigation into a loan that German
property company Deutsche Wohnen  DWNG.DE  made to its top
shareholder Vonovia  VNAn.DE , it said on Tuesday. 
    "While there is currently no clear and irrefutable evidence
of wrongdoing by members of the management and supervisory
boards in connection with the loan agreement, the conduct of the
boards in the context of Vonovia's takeover raises legitimate
concerns about potential conflicts of interest and breach of
fiduciary responsibilities," ISS said in a research report.
    Therefore, a vote for the special audit was considered
warranted, the report said.
    In 2021, Vonovia completed the takeover of rival Deutsche
Wohnen to create a property group with more than 500,000
apartments. In January 2022, Deutsche Wohnen disclosed in a
public filing that it would lend up to 2 billion euros ($2.20
billion) to its new main shareholder.
        An investment vehicle owned by Elliott, wants
shareholders to vote to install an independent investigator to
examine the loan at the shareholder meeting slated for June 15
to examine whether the loan was in the best interest of
investors, the AGM documents show.
  
    Deutsche Wohnen's supervisory board has said that it did not
see any need for an investigation.
    It did not immediately respond to a request for comment on
Tuesday. 


($1 = 0.9084 euros)

 (Reporting by Kirsti Knolle
Editing by Miranda Murray)
 ((kirsti.knolle@thomsonreuters.com;  +49 30 220133561;))