Singtel's Optus takes over Virgin Mobile Australia - Yahoo! News

SYDNEY (AFP) - Australia's number two telco Optus announced it had acquired full control of Virgin Mobile Australia for 30 million dollars (22.5 million US).

The Singapore Telecommunications unit bought a 74.15 percent stake in Virgin Mobile Australia (VMA), bringing its holding in the company to 100 percent.
The deal will allow Optus to use the Virgin brand for the next 15 years.
The 15-year licence will extend to other telecommunication products and allow Optus to market an increased range of products using the Virgin brand, the company said.
Optus Wholesale and Satellite managing director Warren Hardy said Virgin Mobile Australia (VMA) had a market position which consumers responded well to.
"This acquisition cements VMA's future and creates significant new opportunities in marketing an expanded product range to consumers," Hardy said in a statement.
"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."
VMA, which has more than 500,000 customers and recorded revenue of 189 million dollars in 2004, was established as a 50-50 joint venture between the Optus and Virgin groups in 2000, with Virgin Group increasing its shareholding to 74.15 percent in 2002.
The deal includes a cash payment of 30 million dollars for the 74.15 percent equity interest and the buy out of the existing debt of 1.3 million pounds sterling owed by VMA to Virgin, on completion of the acquisition.
SingTel's Australian-listed shares fell 0.02 to 2.09 dollars Wednesday.