United Internet AG Announces Non-cash Impairment on Tele Columbus Investment

Montabaur, June 14, 2024 – United Internet AG has decided to halt further investments in Kublai GmbH, which holds approximately 95% of Tele Columbus AG shares. This decision follows a significant dilution of United Internet’s stake in Kublai, from 40% to around 5%, due to a capital increase by Kublai in Q1 2024.

The capital increase was fully subscribed by Hilbert Management GmbH, an MSI subsidiary. United Internet’s option to reacquire a 40% stake in Kublai by June 17, 2024, for EUR 120 million, will not be exercised. Consequently, United Internet anticipates a non-cash impairment loss of around EUR 185 million in its Half-year Financial Report 2024.

United Internet believes that Tele Columbus AG’s valuation is significantly underestimated and will seek an arbitration court to review MSI's valuation. If the court rules in favor of United Internet, the company expects a compensation amount of around EUR 300 million.