Optus announced today that it had acquired 74.15 per cent of Virgin Mobile Australia Pty Limited ("VMA") from the Virgin Group for A$30 million, increasing the Optus shareholding in VMA to 100 per cent.
At the same time, Virgin Enterprises Limited granted Optus a 15-year licence for ongoing use of the Virgin Mobile brand in Australia. This licence will extend to other telecommunication products and allow the Optus Group to market an increased range of products to consumers using the Virgin brand.
Mr Warren Hardy, Managing Director Optus Wholesale and Satellite, said Virgin Mobile had a unique position in the mobile market and consumers identified with the passionate and fun approach the company has.
"This acquisition cements VMA's future and creates significant new opportunities in marketing an expanded product range to consumers," Mr Hardy said.
"VMA will continue to provide simple and easy to understand offers. We expect the acquisition and ongoing licence to lead to growth in market share," Mr Hardy said.
Jonathan Marchbank, Virgin Mobile Australia Managing Director, said the acquisition was a great outcome for VMA.
"Maintaining the Virgin Mobile brand in Australia and being 100 per cent backed by a solid company like Optus is a great outcome for our staff and our customers.
"This acquisition demonstrates Optus' commitment to providing competition and choice to benefit Australian consumers," Mr Marchbank said.
Over the coming months, Optus will work with VMA's management to integrate the company into the Optus Group.
VMA's mobile customers will continue to receive services as usual.
Optus Corporate Affairs
Tel: +61 2 9342 7846
Mob: +61 0412 206 602