UK cable company NTL has agreed to buy Virgin Mobile in a deal that could be worth up to 984.9 million pounds ($1.7 billion), creating a "quadruple-play" mobile, fixed-line, broadband and TV service under the Virgin brand.
Billionaire entrepreneur Richard Branson, whose Virgin Group owns 71.2 percent of Virgin Mobile, has agreed to receive a mix of cash and NTL stock worth 378 pence per share for his stake, plus a licence fee for the Virgin brand worth about 9 million pounds a year. Virgin Mobile's minority investors will be able to exchange each of their shares for either 372p in cash, 0.23245 NTL shares valued at 389p, or the same mix of cash and shares as Branson, NTL said on Tuesday.
The total price of the deal, which values Virgin Mobile's share capital at 962.4 million pounds, could range from 972.2 million to 984.9 million pounds, depending on which option the minority shareholders choose.
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