German ISP United Internet has agreed to buy a share package equal to a stake of about 15.31% in cableco Tele Columbus which, if approved, will boost its stake to 25.11%. The deal would make United Internet the Frankfurt-listed cableco’s largest shareholder.
German ISP United Internet (FWB:UTDI) has agreed to buy a share package equal to a stake of about 15.31% in cableco Tele Columbus (FSE:TC1) which, if approved, would boost its stake to 25.11%.
Montabaur-based United Internet said in a statement announcing the transaction that it will acquire the shares via subsidiary United Internet Ventures and that closing is subject to the approval of the German antitrust authority Bundeskartellamt.
The deal would make it Berlin-based Tele Columbus’ largest shareholder.
Ralph Dommermuth, CEO of the ISP, noted that his team values Tele Columbus CEO Ronny Verhelst’s (pictured) management of the company, Germany’s third largest cable operator.
“As a strategic investor, we plan to accompany the ongoing development of Tele Columbus and benefit from its growth and value.”
United Internet, which has a market capitalisation of €8.5bn (US$9.63bn), said it does not currently plan to increase its stake in the cableco to the 30% takeover threshold.
Tele Columbus said in its own statement that it “welcomes its new shareholder and looks forward to developing a constructive relationship with United Internet which is beneficial to Tele Columbus, its shareholders and employees”.
At the time of writing, Tele Columbus’ shares were down 3.72% on yesterday’s closing price at €9.11 each. It has a market capitalisation of €1.1bn (US$1.25bn).