News
German ISP becomes cableco’s largest shareholder, but a full takeover is not on the cards.
United Internet on Wednesday announced it has increased its stake in Tele Columbus, becoming the cable operator’s largest shareholder.
The German Internet provider has agreed to acquire 15.31% of Tele Columbus for an undisclosed sum. Presuming the transaction is approved, and factoring the acquisition of additional shares on Thursday, the firm said its indirect holding in the company will increase to 25.11%.
However, the move does not suggest further consolidation in the German market.
United Internet insists it will not take an equity stake of 30% or more in Tele Columbus, the level at which the law would require it to launch a mandatory takeover bid for the company’s remaining shares. It will not make a voluntary takeover bid either, it added.
"We know Tele Columbus and its CEO Ronny Verhelst and value his successful management of the company," said United Internet CEO Ralph Dommermuth.
"As a strategic investor, we plan to accompany the ongoing development of Tele Columbus and benefit from its growth in value," he said.
The company added that it sees Tele Columbus as being well positioned, with attractive opportunities in front of it.
