United Internet lifts 1&1 stake to 90% in €850M debt-for-equity deal
What's the deal? United Internet is raising its stake in subsidiary 1&1 AGDealroom has a profile for this one. Try Dealroom → to about 89.32% by converting an €850,237,942 loan receivable into equity. On October 5, 2026, 1&1 approved a 20% share-capital increase against contributions in kind, excluding existing shareholders' subscription rights.
How it works: United Internet will contribute a loan receivable held against 1&1 Versatel GmbHDealroom has a profile for this one. Try Dealroom →. In exchange, it receives 35,352,929 new 1&1 shares at an issue price of €24.05 each.
Why now? The transaction is designed to strengthen 1&1's capital structure and financial flexibility, and to simplify internal financing. Crucially, it does so without an additional cash outflow for United Internet.
What's the endgame? United Internet keeps tightening its grip on the German broadband and mobile provider. Its existing order to buy up to 6 million additional 1&1 shares by June 30, 2027, remains unchanged.
The signal: By swapping debt for equity rather than paying cash, United Internet consolidates control while cleaning up intra-group finances — a capital-efficient path to near-full ownership of its listed subsidiary.
Read more: wallstreet-online.de
Image credit: Generated with Gemini
