Virgin Mobile UK

Infobox Company
company_name = Virgin Mobile Telecoms Ltd
company_
company_type = Subsidiary of Virgin Media
foundation = 1999
location = flagicon|GBR United Kingdom
key_people = Thomas Alexander, co-founder (resigned as CEO 2006)
flagicon|GBR Sir Richard Branson, co-founder
Graeme Oxby, Managing Director
industry = Mobile Phones
products = Mobile Telephony
revenue = profit GB£563 million (2006)
net_income = profit GB£66 million (2006)
num_employees = 1,700
parent = Virgin Media
homepage = [http://www.virginmobile.co.uk/ www.virginmobile.co.uk]
footnotes = Virgin Mobile UK is a mobile phone service provider operating in the United Kingdom. It is a subsidiary of Virgin Media. The company was the world's first Mobile Virtual Network Operator, launched in 1999. It does not maintain its own network, and instead has contracts to use the existing network of T-Mobile.

Virgin Mobile was originally formed as joint venture between T-Mobile and the Virgin Group, however in January 2004 Virgin Group bought out T-Mobile and then floated Virgin Mobile UK on the London Stock Exchange, retaining a 72% stake. Virgin Group originally planned to raise up to £279m from selling up to 43% of Virgin Mobile however when the group was finally listed only £125m was raised from the sale of a 25% stake after a 20% cut in the value of the listing. Another 3% was later sold on market. At the time the company had 4.1 million customers, employed 1,400 staff in the UK and the listing valued the company at £500m. [cite news
title = Virgin Mobile makes steady debut
publisher = BBC
date = 2002-07-21
url = http://news.bbc.co.uk/1/hi/business/3912429.stm
accessdate = 2007-08-22]

The UK service became part of the new Virgin Media brand on 8 February 2007. Following this, several key personnel, including Alan Gow, Joe (Jonathan) Steel and Philip Nash, left the company.

Acquisition by NTL:Telewest

In December 2005 it was announced that Virgin Mobile UK was in talks with Incorporated regarding a sale. The combination of Virgin Mobile and NTL:Telewest would create the United Kingdom's first "quadruple play" media company, bringing together TV, broadband internet access, mobile phone and fixed-line phone services, and allowing NTL:Telewest to use the Virgin brand.

Under the deal, Virgin owner Sir Richard Branson was understood to be planning to swap his controlling 72% stake in Virgin Mobile for a 14% holding in NTL:Telewest, which would make the billionaire entrepreneur the biggest single shareholder in the combined group, and give him a share of future revenues.

The original bid of £817 million ($1.4 billion) was rejected by Virgin Mobile's independent directors, who took the view that NTL:Telewest's bid "undervalued the business." Sir Richard Branson was reported to be confident that a restructured deal could be completed. The offer was increased in January 2006, to £961m, or 372p per share.

On April 4, 2006, NTL:Telewest Incorporated announced a £962.4m recommended offer for Virgin Mobile. The offer had three options: 372 pence per share in cash; 0.23245 new Inc. shares for each Virgin Mobile share, worth 389p; or a 0.18596 of an NTL:Telewest share, and 67p in cash, worth in total 387p.

Branson indicated that he would accept the third option. This led to him receiving at least a 10.1% stake in the newly enlarged NTL:Telewest, and helped to fund the increased 372p per share in cash for the minority shareholders.

The independent directors of Virgin Mobile indicated to NTL:Telewest that they "intended unanimously to recommend that Virgin Mobile shareholders vote in favour of the scheme."As of the 4 July 2006, NTL:Telewest had acquired Virgin Mobile, delisting it from the London Stock Exchange and leaving Virgin Group with a 10.5% shareholding.

extended the Virgin brand across its business on 8 February 2007, re-launching as Virgin Media.

Virgin Mobile is expected to launch their own mobile broadband service later in the year after renegotiating data use with network partner T Mobile.

ee also

*Virgin Mobile
*Virgin Group
*T-Mobile
*Virgin Media

References

External links

* [http://www.virginmobile.co.uk Virgin Mobile UK]
* [http://www.virginmedia.com/ Virgin Media]