Optus has acquired 74.15 per cent of Virgin Mobile Australia (VMA) from the Virgin Group for A$30 million, increasing the Optus shareholding in VMA to 100 per cent.
At the same time, Virgin Enterprises granted Optus a 15-year licence for ongoing use of the Virgin Mobile brand in Australia. This licence will extend to other telecommunication products and allow the Optus Group to market an increased range of products to consumers using the Virgin brand.
Warren Hardy, managing director Optus Wholesale and Satellite, said Virgin Mobile had a unique position in the mobile market.
"This acquisition cements VMA's future and creates significant new opportunities in marketing an expanded product range to consumers," Hardy said.
"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," Hardy said.
Jonathan Marchbank, Virgin Mobile Australia managing director, said the acquisition was a great outcome for VMA.
He believed the acquisition was a positive step for competition in the mobile industry.
"This acquisition demonstrates Optus' commitment to providing choice to benefit Australian consumers," Marchbank said.
Over the coming months, Optus will work with VMA's management to integrate the company into the Optus Group.
VMA's mobile customers will continue to receive services as usual.
