United Internet to Invest €300 Million to Increase Stake in 1&1

Internet conglomerate United Internet plans to invest up to €300 million to boost its stake in mobile subsidiary 1&1 from 80.8 percent to 90 percent.

"Given the significant investments required in the coming years to expand the 1&1 mobile network, a clear and stable shareholder structure is essential," the company stated on Friday, explaining the rationale behind the move. United Internet is offering 1&1 shareholders €18.50 per share, representing a 20 percent premium over Thursday's closing price of €15.38. However, United Internet, based in Montabaur, emphasized that it does not plan to delist 1&1 from the stock exchange. The company intends to maintain a free float of at least ten percent.

United Internet aims to purchase up to 16.25 million 1&1 shares. In recent weeks, the company has already acquired share packages, increasing its holding from 78.3 percent to 80.8 percent, according to the majority shareholder. Before the offer is officially launched to remaining shareholders, the financial regulator BaFin must approve the prospectus. Both 1&1 and cloud provider Ionos are publicly listed subsidiaries of United Internet.

(Reporting by Alexander Hübner, editing by Ralf Banser. For inquiries, please contact our editorial team at [e-mail] (for politics and economy) or [e-mail] (for companies and markets).)