Optus takes over Virgin Mobile Australia

11 Jan 2006

Australian telco SingTel Optus, a subsidiary of Singapore Telecom, has acquired the 74.15% of Virgin Mobile Australia it did not already own from the Virgin Group. Optus says it paid AUD30 million (USD22.5 million) to up its stake in the mobile virtual network operator (MVNO) to 100%. The deal includes a 15-year agreement for ongoing use of the Virgin Mobile brand in Australia, extending to other telecoms products. Optus is also expected to assume USD2.28 million of debt owed by Virgin Mobile Australia to Virgin Group. Virgin Mobile Australia launched in October 2000 and operates under a wholesale agreement using Optus’ network. It claims to have more than 600,000 customers and posted sales of AUD189 million for full year 2004.

Australia, Optus