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EQS-Ad-hoc: United Internet AG / Key word(s): Investment/Strategic Company Decision
United Internet AG: Non-scheduled, non-cash impairment on Tele Columbus investment
14-Jun-2024 / 20:10 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by EQS News
- a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
Montabaur, June 14, 2024. United Internet AG today resolved to make no further investments in the holding company
Kublai GmbH (Kublai). Kublai currently holds around 95% of shares in Tele Columbus AG (Tele Columbus).
Specifically, United Internet is waiving its right to increase its stake in Kublai to 40% again after it was diluted to
around 5% in the course of a capital increase in the first quarter of 2024. As a result, United Internet expects a
non-cash impairment loss on its investment in Kublai of around EUR 185 million in its Half-year Financial Report 2024.
In its Interim Statement Q1 2024, United Internet reported that Kublai had conducted a capital increase in the first
quarter of 2024 to provide Tele Columbus with equity, in which United Internet did not participate. A further
shareholder of Kublai is Hilbert Management GmbH, an indirect subsidiary of Morgan Stanley Infrastructure Inc. (MSI),
an infrastructure fund managed by the investment bank Morgan Stanley, which subscribed to the full amount of the
capital increase totaling EUR 300 million. This resulted in a dilution of United Internet's stake in Kublai to around
5% (previously 40%). Until June 17, 2024 (previously agreed: June 6, 2024), United Internet has the option to increase
its stake in Kublai back to 40% by acquiring shares from MSI in return for a payment of EUR 120 million.
United Internet is convinced that the valuation of Tele Columbus AG on which the capital increase is based is
significantly too low and that the dilution of the shares held by United Internet is therefore too far-reaching.
However, its majority of votes at the shareholders' meeting enabled MSI to conduct the capital increase on the basis of
a valuation determined by MSI. United Internet will now initiate the contractually stipulated anti-dilution proceedings
and arrange for an arbitration court to review MSI's valuation. If the court follows United Internet's opinion based on
a valuation commissioned prior to the capital increase, United Internet is entitled to a compensation amount of
approximately EUR 300 million.
The reason for the decision of the Management Board and Supervisory Board of United Internet AG not to make any further
investments in Kublai is a difference of opinion between MSI and United Internet regarding the future financing of
Kublai.

Contact
United Internet AG
Lisa Pleiß
Phone +49 2602 96-1616
presse@united-internet.de
Note
In the interests of clear and transparent reporting, the annual financial statements and interim statements of United
Internet AG, as well as its ad-hoc announcements pursuant to Art. 17 MAR, contain additional financial performance
indicators to those required under International Financial Reporting Standards (IFRS), such as EBITDA, EBITDA margin,
EBIT, EBIT margin and free cash flow. Information on the use, definition and calculation of these performance measures
is provided in the Annual Report 2023 of United Internet AG on page 58.
End of Inside Information
14-Jun-2024 CET/CEST The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press
Releases.

Archive at www.eqs-news.com  
Language:     English 
Company:      United Internet AG 

Elgendorfer Straße 57
56410 Montabaur
Germany

Phone:        +49 (0)2602 / 96 - 1100 
Fax:          +49 (0)2602 / 96 - 1013 
E-mail:       info@united-internet.de 
Internet:     www.united-internet.de 
ISIN:         DE0005089031 
WKN:          508903 
Indices:      MDAX, TecDAX 
Listed:       Regulated Market in Berlin, Frankfurt (Prime Standard); Regulated Unofficial Market in Dusseldorf, 

Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange
EQS News ID: 1925721

End of Announcement EQS News Service
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1925721 14-Jun-2024 CET/CEST

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END) Dow Jones Newswires

June 14, 2024 14:10 ET (18:10 GMT)