Posted on 5-Dec-2005 22:12
Filed under: News
NTL Inc has released some information confirming recent press speculation about the company combining its business with Virgin Mobile.
According to ntl, under the potential offer, Virgin Mobile shareholders would receive .09298 shares of ntl common stock per share of Virgin Mobile as well as a full cash alternative at 323p per share. The potential share offer values Virgin Mobile at 323p per share based on ntl's closing price on 2 December 2005.
The Virgin Group, which owns 72 per cent of Virgin Mobile, has given verbal assurances to ntl that, if a transaction proceeds, it intends to elect to exchange its stake in Virgin Mobile for a continuing equity participation in the ntl Group although it has reserved the right to take a small portion of its consideration in cash.
Ntl has held preliminary discussions with T-Mobile, Virgin Mobile's network provider, who has also indicated that it is supportive of the proposed combination.
Ntl already has a licence agreement with Virgin Enterprises for the exclusive use of the Virgin brand in the broadband area and is in discussions with Virgin Enterprises to extend that licence to cover television and fixed line and mobile telephony.
If the proposed combination with Virgin Mobile and the licence agreement are completed, ntl intends to use the Virgin brand to offer a quadruple play of internet, television and fixed line and mobile telephony.
The company says these discussions are preliminary and subject to the satisfaction of certain conditions. Ntl says there can be no assurance that an offer for Virgin Mobile will be made or that any agreement can be reached regarding a licensing arrangement.