The fight between US private equity firm Starwood and German group Vonovia to take control of Victoria Park is escalating after both companies revealed that they have built up a significant stake in the Swedish residential owner.
Starwood, which holds a 24.4% shareholding and 32% of voting rights in Victoria Park after completing its tender offer last week, said that it does not intend to tender its shares to Vonovia, whose higher offer for Victoria Park runs until June 18.
Meanwhile, residential landlord Vonovia said it has secured shares representing roughly 37.3% of Victoria Park's share capital and voting rights a few days before expiry of its offer, which is backed by Victoria Park's management board.
Vonovia's offer values Victoria Park at SEK 17.8 bn (equivalent to €1.7 bn) and represents a 12% premium to Starwood's earlier SEK 34.00 a share bid. It is however conditional upon tendering at least 50% of the shares.
'If Vonovia's offer is successful, Vonovia will control more than 50% of the total number of votes in Victoria Park while Starwood controls another 32.1% of the votes, which will result in a significantly reduced liquidity for the stock,' Vonovia said in a statement.
There is currently no agreement between Vonovia and Starwood on Victoria Park and its governance, it added.
Victoria Park owns 1 million m2 of residential space in Sweden comprising 13,700 flats.