United Internet AG / Key word(s): Contract/Strategic Company Decision
Montabaur, 5 February 2021. Drillisch Online GmbH, a wholly-owned subsidiary of 1&1 Drillisch AG and indirect subsidiary of United Internet, and Telefónica Germany GmbH & Co. OHG (″Telefónica") have long been in negotiations regarding the conclusion of a national roaming agreement based on the commitments of Telefónica under the merger clearance decision of the EU Commission regarding the merger with E-Plus. The EU Commission supervises the compliance of Telefónica with these commitments.
After completion of its analysis, the EU Commission today communicated to 1&1 Drillisch its assessment that the offer submitted by Telefónica in October 2020 was not fully in line with Telefónica's commitments under the EU merger clearance decision and that the offer has to be improved by Telefónica. Thereupon, Telefónica today made an improved offer to 1&1 Drillisch. The improved offer can be accepted by 1&1 Drillisch until 19 February 2021.
1&1 Drillisch will examine whether it is in the interest of the company to accept Telefónica's new offer. Should 1&1 Drillisch decide to accept the offer, the framework conditions and prices offered by Telefónica would then have to be transferred into a national roaming agreement and the application of the new, annually decreasing prices also on MBA MVNO services would have to be regulated with retroactive effect for the period as of July 2020 from the beginning of national roaming.
The conclusion of an agreement, which Telefónica's offer expects until approx. mid of May 2021, would have a positive earnings effect of approx. EUR 30 million for 1&1 Drillisch and thus also for United Internet in the fiscal year 2020, which would be booked as an out-of-period return in the fiscal year 2021. In addition, an agreement on national roaming would constitute an essential prerequisite for 1&1 Drillisch's envisaged rollout of a high-performance 5G network.
The EU Commission's assessment, which has now been communicated, has no significance for the price adjustment procedures initiated by 1&1 Drillisch under the MBA MVNO agreement. In these procedures, 1&1 Drillisch demands from Telefónica significant retroactive reductions of the advance service prices under the MBA MVNO agreement.
05-Feb-2021 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
United Internet AG
Elgendorfer Straße 57
+49 (0)2602 / 96 - 1100
+49 (0)2602 / 96 - 1013
Regulated Market in Berlin, Frankfurt (Prime Standard); Regulated Unofficial Market in Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange
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