Deutsche Annington Immobilien鈥檚 offer for GAGFAH is underway.
Deutsche Annington is to pay 鈧�3.9bn for the listed German residential investor. The combination will create a company with a 鈧�21bn portfolio of around 350,000 residential units.
Once merged, the new entity will be Continental Europe鈥檚 second-largest listed real estate company.
Deutsche Annington offered 鈧�122.52 in cash and five new Deutsche Annington shares for 14 GAGFAH shares at a combined value of 鈧�18 per GAGFAH share, based on Deutsche Annington鈥檚 closing price as of 28 November.
The offer comes at a premium of 16.1% to GAGFAH鈥檚 closing price and runs until 21 January next year.
Deutsche Annington will need a 57% minimum acceptance level on all outstanding GAGFAH shares.
The investor said the merger would save as much as 鈧�84m in operational and financing costs, improving the companies鈥� respective credit profiles.
鈥淪hareholders will benefit from the projected synergies of the combined company and the creation of an even more liquid and attractive equity investment on the financial markets,鈥� the company said in a statement.
The two parties will invest around 鈧�500m in maintenance and modernising their combined housing stock.
