NTL snaps up Virgin Mobile for £962m

Richard Branson has sold Virgin Mobile to NTL for £962.4m

The boards of Virgin Mobile and NTL have agreed a deal that will see the mobile firm snapped up by the UK's biggest cable operator for £962.4m in cash.

Virgin Mobile will be integrated into the NTL portfolio but will retain its brand. NTL has purchased the use of the brand for the next 30 years. The Virgin Mobile team has agreed to stay on.

"After careful consideration, the independent directors of Virgin Mobile intend to recommend NTL's offer to shareholders," said Charles Gurassa, chairman of Virgin Mobile.

"This offer reflects the strong operational and financial performance of Virgin Mobile and represents an excellent opportunity for Virgin Mobile shareholders to realise the significant increase in shareholder value since flotation.

"We believe this offer is in the best interests of Virgin Mobile's shareholders, customers and employees."

The offer is nearly 20 per cent higher than the initial valuation of Virgin Mobile in December.

NTL will now become one of the first full service communications companies, offering fixed and mobile calls, internet access and television services.

"It truly is a step-change transaction not only for NTL but for the media sector as a whole in the UK," said James Mooney, executive chairman at NTL.

"Central to today's announcement is our strong belief that offering quad-play underpins true media convergence, and offering high quality communications services will, we believe, appeal to existing subscribers of the enlarged business as well as new customers."