Virgin Mobile accepts NTL's £962 million bid

Mobile virtual network operator Virgin Mobile has agreed to be acquired by cable TV operator NTL for $1.67 billion.

NTL's bid for British mobile phone company Virgin Mobile Holdings (UK) PLC has won the approval of Virgin Mobile's board, the companies announced Tuesday. The cash-and-stock offer values Virgin Mobile at £962 million (US$1.67 billion), NTL said.

The cable TV operator intends to offer both mobile and fixed-line telecommunications services under the Virgin brand, which it has licensed from Virgin Enterprises for a period of 30 years.

Since NTL's merger with another cable TV operator, Telewest Global, in March, the company's U.K. cable network reaches around 50 percent of U.K. homes, although only around 5 million of the 12 million covered are subscribers, according to NTL figures. The network also reaches 85 percent of U.K. businesses, NTL said.

The purchase of Virgin Mobile will allow NTL to add mobile services to its existing mix of cable TV, telephony and Internet access.

Virgin Mobile has operations in five countries: the U.K., the U.S., Australia, Canada and -- since Monday -- France. It is a mobile virtual network operator (MVNO): that is, it has no wireless network infrastructure of its own, but resells airtime on other companies' networks under its own brand. In the U.K., it resells the service of T-Mobile International AG & Co. KG.

In France, Virgin Mobile's service is run by Omer Telecom, a subsidiary of Carphone Warehouse. Omer already has experience running an MVNO, as it is the company behind the regional operator Breizh Telecom, which serves the region of Brittany in northwest France. The new virtual operator will use the network of Orange.

NTL has offered Virgin Mobile shareholders three options: either £3.72 per share in cash; 0.23245 NTL shares per Virgin Mobile share held (worth £3.89 at Monday's closing price), or 0.18596 NTL shares and £0.67 in cash per Virgin Mobile share (worth £3.78 at Monday's closing price).

Holders of 72 percent of the Virgin Mobile shares have already voted to accept the offer, NTL said.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.
Peter Sayer

Peter Sayer

IDG News Service
Show Comments

Cool Tech

Bang and Olufsen Beosound Stage - Dolby Atmos Soundbar

Learn more >

Toys for Boys

Sony WF-1000XM3 Wireless Noise Cancelling Headphones

Learn more >

ASUS ROG, ACRONYM partner for Special Edition Zephyrus G14

Learn more >

Nakamichi Delta 100 3-Way Hi Fi Speaker System

Learn more >

Family Friendly

Mario Kart Live: Home Circuit for Nintendo Switch

Learn more >

Philips Sonicare Diamond Clean 9000 Toothbrush

Learn more >

Stocking Stuffer

Teac 7 inch Swivel Screen Portable DVD Player

Learn more >

SunnyBunny Snowflakes 20 LED Solar Powered Fairy String

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?