Virgin Mobile USA completes purchase of Helio

August 22, 2008 | Faysal | Comments 0

Today Virgin Mobile USA announced that it has completed its acquisition of fellow MVNO Helio, which was until now owned by its original SK Telecom and Earthlink parents. In return for Helio, Virgin has payed an equivalent 13 million shares worth of its common stock, worth roughly US$38 million, to SK and Earthlink. Virgin Mobile USA stock is currently trading at US$2.72. On top of the payments made, SK Telecom and Virgin Group, a UK based venture capital company, will each invest an additional $25 million into Virgin Mobile USA in exchange for preferred stock. SK telecom will also receive two seats on Virgin Mobile USA’s board of directors. The Helio deal marks Virgin Mobile’s move into the post-paid market. Previously it had only offered pre-paid mobile services through an agreement with Sprint.