1&1 AG: United Internet Plans to Increase Stake

United Internet has announced plans to increase its stake in 1&1 AG, a leading telecommunications provider in Germany. The company intends to acquire up to 9.2% of 1&1 AG’s shares through a public partial acquisition offer, proposing a price of €18.50 per share. This offer represents approximately a 20% premium over the last XETRA closing price and about a 29% increase over the 52-week low of €11.08, as of January 26, 2025.

Market Reaction

The announcement has led to a significant surge in 1&1 AG’s stock price, with a 20% increase observed on May 16, 2025. This move is part of United Internet’s strategy to increase its holding in 1&1 AG from approximately 80.81% to up to 90%. The offer includes the acquisition of around 16.25 million shares, equating to roughly 9.19% of the company’s capital.

Financial Context

As of May 13, 2025, 1&1 AG’s share price closed at €15.32, with a 52-week high of €17.84 recorded on June 5, 2024. The company’s market capitalization stands at approximately €2.8 billion, with a price-to-earnings ratio of 13.0467. In its latest financial update, 1&1 AG announced a dividend of €0.05 per share for the year 2024.

Strategic Implications

United Internet’s move to increase its stake in 1&1 AG underscores its commitment to consolidating its position in the telecommunications sector. 1&1 AG, headquartered in Maintal, Germany, operates in broadband and mobile internet services, offering products such as mobile access, landline services, home networks, and video on demand. The company also provides software solutions for business process management and workflow automation.

Conclusion

The strategic acquisition by United Internet is expected to strengthen its control over 1&1 AG, enhancing its capabilities in the telecommunications market. This development is closely watched by investors and industry analysts, given its potential impact on the competitive landscape in Germany’s telecommunications sector.