NTL makes three offers for Virgin Mobile
US based cable service providers NTL have announced that they made three new offers for the British telecommunications group Virgin Mobile and one of these offers has been accepted by Richard Branson who is the majority shareholder in the company. The first offer was in cash and valued the company at around 940 million pounds.
The second offer from the company was in NTL Shares, which was worth around 890 million pounds. Richard Branson decided to take the third offer, which was a mixture of both cash and stocks. This option put the value of Virgin Mobile group at around 883 million pounds. The acceptance from Branson has cleared the way for NTL to takeover the Virgin Mobile group.
Branson’s Virgin Group owns a majority stake in this mobile company and they have confirmed that they have accepted the offer of 0.074384 “redeemable units” of NTL stock plus 67 pence in cash for each share held. Rest of the investors in the company has the option to accept the same or take another offer of 372 pence per share or 0.09298 NTL shares.
Branson and the directors of Virgin Mobile had earlier declined to accept the original offer of NTL group, which placed the value of the companyâ€™s share at 323 pence.