German homes group Deutsche Wohnen details e250m capital increase

German listed residential property investor Deutsche Wohnen has resolved on a subscription price of e4.50 per share for the new ordinary bearer shares with no par value as the result of a capital increase which will bring in nearly e250m in fresh money. The issue will boost nominal capital by an issue of of 55.4m new shares, taking the value to e81.8m from e26.4m. Shareholders are entitled to acquire 21 shares for each 10 held. The rights issue runs to 7 October. "The capital increase strengthens our financial resources and allows us to benefit from the currently unsettled property market by means of selective asset purchases," Chairman Michael Zahn said. The major shareholders, US-based private equity group Oaktree Capital, have fully taken up its rights allocation.