SYDNEY, Australia-Australian cable and wireless provider Optus Ltd. acquired 100 percent of Virgin Mobile Australia from the Virgin Group plc for about $22.5 million. The deal also gives Optus a license to use the VMA brand for 15 years.
VMA started out in 2000 as a 50-50 joint venture between Optus and Virgin Group; the mobile virtual network operator piggybacks on Optus’ wireless network. Virgin Group increased its stake in VMA in 2002 to 74.15 percent-which is the stake that Optus has purchased. Optus is part of Singapore Telecommunications Ltd.
Under the terms of the purchase, Optus also can use the Virgin brand to market other telecommunications products, such as wireline and Internet services.
Virgin Mobile Australia serves more than 500,000 customers in Australia. Optus said customers will not be affected by the change in ownership, and the two companies plan to work on integrating their operations over the coming months.
