Morgan Stanley Infrastructure Partners is buying German network operator Tele Columbus for more than €410m.

Morgan Stanley, via a company called Kublai, is offering €3.25 for each Tele Columbus share. Tele Columbus shares traded at €3.22 each late Monday, giving the company a €410m market capitalisation.

The offer is expected to be accepted by Tele Columbus shareholders which include 29.90% shareholder United Internet and Rocket Internet with a 13.36% stake. United Internet will exchange its stake in Tele Columbus for a stake in Kublai.

Following the takeover, Kublai is expected to subscribe to a rights issue of up to €475m offered to be offered by Tele Columbus next month. Kublai is also expected to commit up to €75m in equity to support Tele Columbus’ fibre optic expansion strategy.

Following the deal, United Internet will have the option to increase its stake in Kublai in order to have an indirect shareholding in Tele Columbus of between 29.9% and 40%.

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