Virgin U-Turn - Plans to float

[preiffer]

Full Story here

In an exclusive interview with The Times, Stephen Murphy, Virgin’s chief executive and head of the group’s powerful investment committee, said: "We think of our peer group now being people like Apax and Blackstone.”

While planning to float its businesses, Virgin will retain a stake in them and keep directors on their boards in order to protect the brand.

The company is already pursuing a New York listing for Virgin Mobile USA. Virgin Active, its health club chain, is likely to be the next to float.

Mr Murphy said: “Once we have built a company to a point where it has reached a level of stability and maturity we will seek a public exit. We are much more comfortable with that idea now but there are no firm targets of how many businesses we want to float.”

Finding some more resources for the money-go-round?

Paul

[Scrooge]

Sure looks that way.

[ChuckC]

Not the best subject to be touting to the world.

Chuck-

[Scrooge]

Of course though going public will mean that Virgin will have to open it's books so the cabin crew can get a real look at the situation.


I am not sure this will ever happen, maybe parts of the group will be made public, but I kind of see this as is said above as a way to raise cash.

The airline has always been excluded from these types of transactions and as SRB's baby who know's, I would not be surprised to see this happen again.

Virgin as a group as a kind of Dragon's Den, then. Put up some of the money and get a wedge of equity (in part as a return for the Virgin Brand). Unless there's a huge, immediate, +ve cashflow involved with the businesses the next steps will be to float, extract the value, take the money (and run), on to next venture. (did someone say Virgin Media?) From that point on the relationship with the group would likely be at arms length, kind of like a franchise using the brand.

Like Scrooge I can't see that VS would form part of this money-go-round, except as recipient for some of the proceeds that accrue to SRB from the rest of the group.

Paul

[ChuckC]

Might this also have something to do with SRB's desired legacy as well?

Chuck-