3. Subsequent Events
United Internet AG has exercised its right to prematurely terminate a variable-rate tranche of promissory note loans totaling € 50 million and will repay it on the interest payment date of March 27, 2020. This tranche, which bore interest at 0.80% p.a., was originally due for repayment on March 27, 2023. As a result, the breakdown of liabilities into current and non-current bank liabilities disclosed in the consolidated balance sheet has been changed accordingly by the above mentioned amount.
Based on the authorization granted by the Annual Shareholders' Meeting on May 18, 2017 regarding the acquisition and use of treasury shares, and with the approval of the Supervisory Board, the Management Board of United Internet AG resolved on March 12, 2020 to cancel 11,000,000 treasury shares and to reduce the capital stock of United Internet AG by € 11,000,000, from € 205,000,000 to € 194,000,000. The number of shares issued will decrease correspondingly by 11,000,000, from 205,000,000 to 194,000,000 shares. Issued shares will continue to represent a notional share of capital stock of € 1 each. The cancellation of treasury shares is aimed at raising the percentage stake of United Internet shareholders. On completion of the capital reduction, the Company’s capital stock will return to the level prior to the capital increase for the Versatel acquisition in 2014. Following the cancellation of these 11,000,000 shares, United Internet AG will still hold 6,338,513 treasury shares.
The ongoing global spread of the coronavirus (SARS-CoV-2) is increasingly impacting the risk situation of the United Internet Group, for example in the risk areas of “Procurement market” and “Acts of God”. Should the virus continue to spread over a longer period, this may also have a negative impact on demand, as well as on the usage and payment behavior of consumers and business owners, the purchase of pre-services (e.g. smartphones, routers, servers or network technology), or the health and fitness of employees, and thus ultimately on the performance of the United Internet Group. A precise risk assessment with regard to the duration and concrete effects of the corona crisis is not possible at present, as the assessments of health experts and political measures are also changing on an almost hourly basis.
There were no other significant events subsequent to the end of the reporting period on December 31, 2019 which had a material effect on the financial position and performance or the accounting and reporting of the parent company or the Group.
Information on the economic position of the Group and Company at the time of preparing this Management Report are provided under point 4.3 in the “Forecast report”.