Key Events During the Reporting Period
The acquisition of 2,340 apartments in the greater Stockholm and Gothenburg regions by Vonovia from Akelius Residential Property was completed on April 1, 2019. The value of the property assets acquired amounts to around € 451.9 million.
Vonovia implemented a capital increase involving 16,500,000 new shares on May 16, 2019. The new shares were placed with institutional investors in the scope of a private placement by means of an accelerated bookbuilding procedure and will carry dividend rights as of January 1, 2019. The shares were granted at a placement price of € 45.10 per share. This increases the capital reserves by € 727.7 million.
The Annual General Meeting held on May 16, 2019, resolved to pay a dividend for the 2018 fiscal year in the amount of € 1.44 per share. During the subscription period, shareholders with a total of 45.8% of shares carrying dividend rights opted for the scrip dividend that had been offered as opposed to a cash dividend. As a result, 7,695,677 new shares were issued at a subscription price of € 44.352 and in a total amount of € 341.3 million.
As part of the public takeover offer made to the shareholders of Victoria Park AB (publ), Vonovia had agreed on call options for 10,235,198 class A shares and 14,264,946 class B shares, which corresponds to 10.0% of the total number of shares and 12.5% of the total voting rights in Victoria Park. These call options were exercised on May 15, 2019, meaning that Vonovia controls 91.4% of the total number of shares and 94.4% of the total voting rights as of June 30, 2019.
Vonovia then asked the Board of Directors of Victoria Park to initiate a squeeze-out in line with the Swedish Companies Act for the purchase of all remaining shares in Victoria Park. The Board of Directors of Victoria Park resolved to apply for Nasdaq Stockholm to delist Victoria Park’s ordinary shares of class A and class B. The last day of trading was June 18, 2019.
In the second quarter of 2019, there was an increase in value of € 2,258.7 million (€ 2,056.2 million of it in Germany) as part of the valuation of property portfolios. This led to an impairment test of the goodwill in the German business areas of the Rental segment.
The impairment tests performed in the second quarter of 2019 revealed the need for goodwill impairments in the amount of € 1,901.0 million. These are distributed among the business areas North, Southeast, West, Central and South of the Rental segment Germany. There was also a negative effect due to currency changes of the Swedish krona in the amount of € 5.8 million.