Virgin Mobile accepts revised ntl takeover deal

4 Apr 2006

MVNO Virgin Mobile UK has accepted a takeover offer from newly merged cable operator ntl Incorporated in a deal that values the cellco’s share capital at GBP962.4 million (USD1.66 billion). ntl first made an offer for Virgin Mobile, which is 71.3% owned by Sir Richard Branson’s privately held Virgin Group, in December 2005, but minority investors rejected the GBP810 million bid. This week ntl returned with an offer of 372p per share in cash for the cellco’s minority shareholders, or 0.23245 ntl shares, or a mix of ntl shares and cash. Sir Richard has accepted a mixture of cash and ntl shares, to take a major stake in the new company. ntl said it has agreed to license the Virgin brand for 30 years; terms of the licensing deal were not disclosed. ntl plans to use the Virgin brand name across its operations, to establish a heavyweight internet, television and telecoms services company that could take on the dominance of BT and satellite broadcaster BSkyB.

United Kingdom, Virgin Media, Virgin Mobile UK