RICHARD Branson has sold his majority stake in Virgin Mobile Australia

[Ext User(s h)]

RICHARD Branson has sold his majority stake in Virgin Mobile Australia to
his joint venture partner Optus, taking a $20 million loss on the business
less than six years after it was launched into the Australian market.

Optus will pay just $30 million in cash for Virgin's 74.15 per cent stake in
the mobile telephony business, which has eaten up $120 million of Sir
Richard's money since October 2000, as well as paying out a pound stg. 1.3
million ($3.1 million) loan owed to Virgin by VMA.
But Virgin Group Asia-Pacific chief executive David Baxby said the licensing
deal, which would allow Optus to continue using the Virgin brand in return
for a percentage of revenue, would bring in a minimum $5 million a year.

The trademark licence has been extended to allow Optus to provide a broader
range of telecommunications services, including fixed-line and internet,
under the Virgin brand and name. Mr Baxby said the 15-year licence could be
renewed for an additional 10 years and was worth between $60 million and $70
million in net present value terms.

We're losing money up-front, which we obviously don't like doing," he said.
"But if you take into account the future payments that are to come, we have
the potential to make that back over the life of the agreement." Virgin
Mobile Australia began as a 50-50 joint venture between Optus and Virgin,
which increased its stake in 2002 by pouring an additional $60 million into
the business. The sale has been under negotiation since July and is a sharp
about-face for Sir Richard, who is also trying to exit his listed mobiles
business in Britain.

Virgin Mobile Australia has more than 500,000 customers in Australia, using
the Optus network. Optus said that those customers would continue to receive
services as usual. The telco also confirmed that retail outlets in Sydney,
Brisbane and Melbourne and distribution channels would be maintained. By
keeping Virgin Mobile Australia as a stand-alone business, Optus hopes to
compete more strongly with Vodafone in the lower-value youth market. At the
same time, it will keep the higher-priced markets for small businesses,
corporates and the high-end consumer market segments on its own
Optus-branded services.

Shares in Optus's owner Singapore Telecommunications eased 2c to close at
$2.09 yesterday, before the VMA deal was announced.

The Australian

[Ext User(Dean Collins)]

wow thats surprising they really spent $120million to get that company
started?

thats insane, no offense but are you sure that figure is correct?

Are you also sure that there have been no dividends or assets removed from
Virgin Australia during that 5 years?

Cheers,
Dean


"s h" <sh@sh.net.au> wrote in message
news:utmxf.214161$V7.157691@news-server.bigpond.net.au...
> RICHARD Branson has sold his majority stake in Virgin Mobile Australia to
> his joint venture partner Optus, taking a $20 million loss on the business
> less than six years after it was launched into the Australian market.
>
> Optus will pay just $30 million in cash for Virgin's 74.15 per cent stake
> in
> the mobile telephony business, which has eaten up $120 million of Sir
> Richard's money since October 2000, as well as paying out a pound stg. 1.3
> million ($3.1 million) loan owed to Virgin by VMA.
> But Virgin Group Asia-Pacific chief executive David Baxby said the
> licensing
> deal, which would allow Optus to continue using the Virgin brand in return
> for a percentage of revenue, would bring in a minimum $5 million a year.
>
> The trademark licence has been extended to allow Optus to provide a
> broader
> range of telecommunications services, including fixed-line and internet,
> under the Virgin brand and name. Mr Baxby said the 15-year licence could
> be
> renewed for an additional 10 years and was worth between $60 million and
> $70
> million in net present value terms.
>
> We're losing money up-front, which we obviously don't like doing," he
> said.
> "But if you take into account the future payments that are to come, we
> have
> the potential to make that back over the life of the agreement." Virgin
> Mobile Australia began as a 50-50 joint venture between Optus and Virgin,
> which increased its stake in 2002 by pouring an additional $60 million
> into
> the business. The sale has been under negotiation since July and is a
> sharp
> about-face for Sir Richard, who is also trying to exit his listed mobiles
> business in Britain.
>
> Virgin Mobile Australia has more than 500,000 customers in Australia,
> using
> the Optus network. Optus said that those customers would continue to
> receive
> services as usual. The telco also confirmed that retail outlets in Sydney,
> Brisbane and Melbourne and distribution channels would be maintained. By
> keeping Virgin Mobile Australia as a stand-alone business, Optus hopes to
> compete more strongly with Vodafone in the lower-value youth market. At
> the
> same time, it will keep the higher-priced markets for small businesses,
> corporates and the high-end consumer market segments on its own
> Optus-branded services.
>
> Shares in Optus's owner Singapore Telecommunications eased 2c to close at
> $2.09 yesterday, before the VMA deal was announced.
>
> The Australian
>
>
>

[Ext User(s h)]

Dean it was taken from the Australian (Which is a news paper here)

"Dean Collins" <collins_dean"spam.me.here."@hotmail.com> wrote in message
news:Tuvxf.2$yE4.1@news-wrt-01.rdc-nyc.rr.com...
> wow thats surprising they really spent $120million to get that company
> started?
>
> thats insane, no offense but are you sure that figure is correct?
>
> Are you also sure that there have been no dividends or assets removed from
> Virgin Australia during that 5 years?
>
> Cheers,
> Dean
>
>
> "s h" <sh@sh.net.au> wrote in message
> news:utmxf.214161$V7.157691@news-server.bigpond.net.au...
> > RICHARD Branson has sold his majority stake in Virgin Mobile Australia
to
> > his joint venture partner Optus, taking a $20 million loss on the
business
> > less than six years after it was launched into the Australian market.
> >
> > Optus will pay just $30 million in cash for Virgin's 74.15 per cent
stake
> > in
> > the mobile telephony business, which has eaten up $120 million of Sir
> > Richard's money since October 2000, as well as paying out a pound stg.
1.3
> > million ($3.1 million) loan owed to Virgin by VMA.
> > But Virgin Group Asia-Pacific chief executive David Baxby said the
> > licensing
> > deal, which would allow Optus to continue using the Virgin brand in
return
> > for a percentage of revenue, would bring in a minimum $5 million a year.
> >
> > The trademark licence has been extended to allow Optus to provide a
> > broader
> > range of telecommunications services, including fixed-line and internet,
> > under the Virgin brand and name. Mr Baxby said the 15-year licence could
> > be
> > renewed for an additional 10 years and was worth between $60 million and
> > $70
> > million in net present value terms.
> >
> > We're losing money up-front, which we obviously don't like doing," he
> > said.
> > "But if you take into account the future payments that are to come, we
> > have
> > the potential to make that back over the life of the agreement." Virgin
> > Mobile Australia began as a 50-50 joint venture between Optus and
Virgin,
> > which increased its stake in 2002 by pouring an additional $60 million
> > into
> > the business. The sale has been under negotiation since July and is a
> > sharp
> > about-face for Sir Richard, who is also trying to exit his listed
mobiles
> > business in Britain.
> >
> > Virgin Mobile Australia has more than 500,000 customers in Australia,
> > using
> > the Optus network. Optus said that those customers would continue to
> > receive
> > services as usual. The telco also confirmed that retail outlets in
Sydney,
> > Brisbane and Melbourne and distribution channels would be maintained. By
> > keeping Virgin Mobile Australia as a stand-alone business, Optus hopes
to
> > compete more strongly with Vodafone in the lower-value youth market. At
> > the
> > same time, it will keep the higher-priced markets for small businesses,
> > corporates and the high-end consumer market segments on its own
> > Optus-branded services.
> >
> > Shares in Optus's owner Singapore Telecommunications eased 2c to close
at
> > $2.09 yesterday, before the VMA deal was announced.
> >
> > The Australian
> >
> >
> >
>
>

[Ext User(Dean Collins)]

der, I know what The Australian is, I may live in NY but my IQ hasn't
morphed to that of the average american.

what I was question was if anyone knew the truth about the real figures.

Dean


"s h" <sh@sh.net.au> wrote in message
news:lyFxf.214960$V7.124052@news-server.bigpond.net.au...
> Dean it was taken from the Australian (Which is a news paper here)
>
> "Dean Collins" <collins_dean"spam.me.here."@hotmail.com> wrote in message
> news:Tuvxf.2$yE4.1@news-wrt-01.rdc-nyc.rr.com...
>> wow thats surprising they really spent $120million to get that company
>> started?
>>
>> thats insane, no offense but are you sure that figure is correct?
>>
>> Are you also sure that there have been no dividends or assets removed
>> from
>> Virgin Australia during that 5 years?
>>
>> Cheers,
>> Dean
>>
>>
>> "s h" <sh@sh.net.au> wrote in message
>> news:utmxf.214161$V7.157691@news-server.bigpond.net.au...
>> > RICHARD Branson has sold his majority stake in Virgin Mobile Australia
> to
>> > his joint venture partner Optus, taking a $20 million loss on the
> business
>> > less than six years after it was launched into the Australian market.
>> >
>> > Optus will pay just $30 million in cash for Virgin's 74.15 per cent
> stake
>> > in
>> > the mobile telephony business, which has eaten up $120 million of Sir
>> > Richard's money since October 2000, as well as paying out a pound stg.
> 1.3
>> > million ($3.1 million) loan owed to Virgin by VMA.
>> > But Virgin Group Asia-Pacific chief executive David Baxby said the
>> > licensing
>> > deal, which would allow Optus to continue using the Virgin brand in
> return
>> > for a percentage of revenue, would bring in a minimum $5 million a
>> > year.
>> >
>> > The trademark licence has been extended to allow Optus to provide a
>> > broader
>> > range of telecommunications services, including fixed-line and
>> > internet,
>> > under the Virgin brand and name. Mr Baxby said the 15-year licence
>> > could
>> > be
>> > renewed for an additional 10 years and was worth between $60 million
>> > and
>> > $70
>> > million in net present value terms.
>> >
>> > We're losing money up-front, which we obviously don't like doing," he
>> > said.
>> > "But if you take into account the future payments that are to come, we
>> > have
>> > the potential to make that back over the life of the agreement." Virgin
>> > Mobile Australia began as a 50-50 joint venture between Optus and
> Virgin,
>> > which increased its stake in 2002 by pouring an additional $60 million
>> > into
>> > the business. The sale has been under negotiation since July and is a
>> > sharp
>> > about-face for Sir Richard, who is also trying to exit his listed
> mobiles
>> > business in Britain.
>> >
>> > Virgin Mobile Australia has more than 500,000 customers in Australia,
>> > using
>> > the Optus network. Optus said that those customers would continue to
>> > receive
>> > services as usual. The telco also confirmed that retail outlets in
> Sydney,
>> > Brisbane and Melbourne and distribution channels would be maintained.
>> > By
>> > keeping Virgin Mobile Australia as a stand-alone business, Optus hopes
> to
>> > compete more strongly with Vodafone in the lower-value youth market. At
>> > the
>> > same time, it will keep the higher-priced markets for small businesses,
>> > corporates and the high-end consumer market segments on its own
>> > Optus-branded services.
>> >
>> > Shares in Optus's owner Singapore Telecommunications eased 2c to close
> at
>> > $2.09 yesterday, before the VMA deal was announced.
>> >
>> > The Australian
>> >
>> >
>> >
>>
>>
>
>