Richard Branson’s Virgin Group and co-investors plan to invest about US$1bn in Russia-focussed businesses, including a new MVNO.
The Virgin Group, Virgin Green Fund and Russia’s Rosnano Capital today announced plans to set up an emerging market…
Richard Branson’s Virgin Group and co-investors plan to invest about US$1bn in Russia-focussed businesses, including a new MVNO.
The Virgin Group, Virgin Green Fund and Russia’s Rosnano Capital today announced plans to set up an emerging market growth fund with commitments of more than US$200m.
“The fund will invest in buyout and growth equity opportunities in mid-cap companies” a joint statement read. “It will target the resource efficiency, consumer sustainability and renewable energy sectors in Russia, Turkey and central and eastern Europe.”
Reuters quoted Branson as saying Virgin plans to invest about US$1bn in total in Russia-focussed businesses, and is currently working to secure the necessary approvals for setting up the MVNO and launching flights to and from Moscow.
A Virgin spokesperson told TelecomFinance that planning for the Russian MVNO is still at an early stage. The group’s MVNO division, Virgin Mobile, recently launched in Poland and, on 15 October, said it is seeking to raise US$90m-US$100m from individual and private equity investors to finance its expansion into new markets in Europe, the Middle East, Africa and Latin America. UBS is handling the financing in Europe.
The spokesperson said Virgin Mobile’s next European target is Russia, followed by Turkey.
However, he noted that launching Virgin’s airline business in Russia would use up a large part of the US$1bn figure, leaving “a couple of hundred million” to be invested in the MVNO.