1&1 AG: United Internet’s Strategic Move to Increase Stake
In a significant development within the telecommunications sector, United Internet AG has announced its intention to increase its stake in 1&1 AG, a leading telecommunications provider in Germany. This move is set to reshape the landscape of the industry, as United Internet aims to elevate its ownership from approximately 81% to a commanding 90%.
Strategic Acquisition Offer
United Internet has made a public acquisition offer to purchase additional shares of 1&1 AG at a price of €18.50 per share. This offer targets up to 16.25 million shares, representing around 9.19% of 1&1’s total capital. The strategic acquisition underscores United Internet’s commitment to consolidating its position in the telecommunications market, leveraging 1&1’s robust portfolio of broadband and mobile services.
Market Reaction
The announcement has triggered a notable reaction in the financial markets. On May 16, 2025, 1&1 AG’s stock experienced a significant surge, jumping by 20%. This sharp increase reflects investor confidence in the potential synergies and enhanced market positioning resulting from United Internet’s increased stake. Conversely, United Internet’s own stock saw a decline, a common occurrence when a company uses its shares to finance acquisitions.
Financial Overview
As of May 13, 2025, 1&1 AG’s stock was trading at €15.32, having fluctuated between a 52-week high of €17.84 and a low of €11.08. The company boasts a market capitalization of approximately €2.8 billion, with a price-to-earnings ratio of 13.0467. These figures highlight the company’s solid financial standing and its attractiveness as an acquisition target.
Dividend Announcement
In a recent shareholder meeting, 1&1 AG announced a dividend payout of €0.05 per share for the year 2024. This decision reflects the company’s commitment to returning value to its shareholders, even as it undergoes strategic changes under United Internet’s expanded ownership.
Conclusion
United Internet’s move to increase its stake in 1&1 AG is a strategic play to strengthen its foothold in the telecommunications sector. By consolidating its ownership, United Internet aims to enhance operational efficiencies and capitalize on 1&1’s extensive service offerings. As the market digests this development, stakeholders will be keenly watching the long-term implications for both companies and the broader industry landscape.