Green light for Annington takeover of Gagfah this quarter

Germany’s Cartel Office last week gave the green light for the takeover by Deutsche Annington of fellow-listed Gagfah, removing a potential hurdle to the creation of the new giant residential housing company, with its more than 350,000 apartments.

Annington said last week that it now had the acceptances of 85.2% of the votes of Gagfah shareholders, including shares tied in to convertible bond issues, to go ahead with the takeover. The minimum quotient had been set at 50%, or 57% of the bond-related share, a margin which has now been comfortably met. Annington has offered €122.52 in cash for every 14 Gagfah shares, as well as five new shares in the enlarged Deutsche Annington. Gagfah stock is currently trading at just under €20.00.

According to Annington’s CEO Rolf Buch, “We are very happy about the unfailingly positive acceptance of our undertaking to combine Deutsche Annington and Gagfah to form a leading German residential company with around 350,000 units.” Remaining Gagfah shareholders will be able to tender their shares in an additional acceptance period ending on 9th February. Formal closing of the deal is expected this quarter.

The new company, whose likely new name and headquarters location have yet to be decided upon, will see Rolf Buch becoming CEO and Gagfah’s CEO Thomas Zinnöcker becoming his deputy CEO. The combined group will have assets worth €21bn.