Deutsche Wohnen SE — M&A Activity 2006

Feb 7, 2006

News Details

Corporate | 7 February 2006 07:55

Deutsche Wohnen AG: New orientation – Objective: Growth and independence

Corporate-news transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. —————————————————————————— Deutsche Wohnen AG intends to improve the positioning on the German residential market and to increase the Net Asset Value by acquisitions of residential property portfolios. Currently, the German housing market provides good opportunities for Deutsche Wohnen AG. For the coming years, further growth potential is discernible in the market for privatisation of residential property. However, a new direction for Deutsche Wohnen AG geared towards growth requires the cancellation of the control agreement with DB Real Estate Management GmbH. The subsidiary within Deutsche Bank Group has linked the cancellation of the control agreement with a waiver of the shareholders regarding their tender right (exercisable in 2009), which was agreed between DB Real Estate Management GmbH and the shareholders of Deutsche Wohnen AG. Deutsche Wohnen AG’s shares are currently quoted at EUR 226 (closing price on February 6, 2006 on XETRA). The calculational tender price price currently amounts to approximately only EUR 110 per share. Today the agenda of an Extraordinary General Meeting on 23 March 2006 was published. Inter alia the Management Board and the Supervisory Board will propose that the General Meeting adopt a resolution cancelling the control agreement and that the shareholders pass on their tender right. Andreas Lehner (CEO) stated in this context: ‘On account of the well-functioning management team, the company’s know-how of the residential housing markets, the excellent market reputation, and not least its exceptionally high equity ratio, Deutsche Wohnen faces ideal conditions for continued growth.’. Lehner stresses that as a capital market platform, the company represents an ideal partner for municipalities and other owner’s groups for implementing value-driven strategies in the residential housing sector; furthermore, a partner that assumes entrepreneurial and financial responsibility. As measured by its market capitalisation of EUR 904 m, Deutsche Wohnen AG is currently the biggest German listed residential real estate stock corporation. In addition to residential housing management, the privatisation of residential property represents Deutsche Wohnen AG’s earnings base. Andreas Lehner will explain the agenda for the Extraordinary General Meeting as well as the timetable for deconsolidation during a telephone conference scheduled for tomorrow Wednesday, February 8, 2006 at 3:00 p.m. (Frankfurt time) In addition the provisional Group results for the financial year 2005 will be presented. The telephone conference that will be held in English will be transmitted live via the Internet (http://www.deutsche-wohnen.de). Hubert Bonn (IR & PR), Phone: +49 6131 6397 116, e-mail: ir@deuwo.com (c)DGAP 07.02.2006 ————————————————————————— language: English emitter: Deutsche Wohnen AG Pfaffenwiese 300 65929 Frankfurt am Main Deutschland phone: 06131-6397-116 fax: 06131-6397-199 email: hubert.bonn@deutsche-wohnen.de WWW: www.deutsche-wohnen.de ISIN: DE0006283302 WKN: 628330 indexes: End of News DGAP News-Service —————————————————————————