Virgin Mobile is raising US$90-US$100m from individual and private equity investors to finance its expansion into new markets in Europe, the Middle East, Africa and Latin America. Sir Richard Branson’s MVNO group plans to use the new funds for…
Virgin Mobile is raising US$90-US$100m from individual and private equity investors to finance its expansion into new markets in Europe, the Middle East, Africa and Latin America.
Sir Richard Branson’s MVNO group plans to use the new funds for launches in several countries across the regions, a Virgin Group spokesperson confirmed.
While some financing has already been secured, the company is seeking additional funds, the group spokesperson said.
UBS is handling the financing in Europe and Latin America, while Standard Bank is looking after the Middle East and Africa.
Virgin Mobile Latin America’s current financial investors include former Vodafone deputy CEO Sir Julian Horn-Smith, former Telefonica CEO Juan Villalonga and Stagecoach Group founder Brian Souter.
Virgin Mobile entered into a partnership with Middle Eastern MVNO, Friendi Group, in June to set up a Middle East and Africa division, subsequently commencing operations in South Africa. The company is also eyeing launches in Oman, the UAE, Saudi Arabia and Egypt, the group spokesperson said.
“Our partner Friendi is already in a number of markets and we believe there is scope to run both brands,” he said, adding that the Dubai-based group has three “live” operations in Jordan, Oman and Saudi Arabia.
Virgin Mobile Central and Eastern Europe made its market debut in Poland in August and a spokesperson for the division confirmed it is also interested in the Russian and Turkish markets.
“We are very interested in both countries because they are large telecoms markets and so represent a major opportunity to grow the Virgin Mobile brand,” he said. “We believe that, although reported penetration is high, there is space for us to develop attractive businesses, because unlike other markets, the virtual operator business model is not yet well established.”
Virgin Mobile is currently present in Australia, Canada, France, India, Poland, South Africa, the UK, the US, Chile and Colombia, according to the company website.
