Virgin ready to float businesses on stock market again

Aug 21 2007 by Alistair Houghton, Liverpool Daily Post

SIR RICHARD Branson’s Virgin empire could go public in a new strategy that will see the group act as a consumer-focused private equity investment firm.

The move would be a significant U-turn for Virgin, which floated on the Stock Market in 1986 but went private again two years later as Sir Richard Branson became frustrated with the City’s “short-termist” attitude to investment.

But separate company Virgin Media, which has more than 100,000 customers in Merseyside, has already floated on the New York Stock Exchange.

And, in an interview with The Times, Virgin’s chief executive Stephen Murphy said the Virgin group planned to adopt an investment strategy similar to that used by global private equity giants such as Blackstone and Apax Partners.

The group looks set to sell the businesses it owns on the stock market, kicked off by the planned flotation of Virgin Mobile USA, a joint venture between Virgin Group and US telecoms operator Sprint Nextel, in New York.

Virgin Active, the group’s fitness club chain, could be next up for a public listing, with Virgin Atlantic airline also possibly in line.

Virgin, now run by an executive committee after Sir Richard took a back seat from day-to-day running, is reportedly aiming to use the stock market to help grow a portfolio of Virgin-branded investments.

Virgin is set to buy minority shareholdings in new ventures, supply its recognisable brand and help build the businesses up either for sale or flotation.

Sir Richard will also act as the public face of new Virgin ventures to boost publicity.