Virgin Media O2 is reportedly actively seeking external investors to support its GBP 5 billion (USD 6.6 billion) newly established network company, aiming to compete with BT Group Plc.
According to the sources, who requested anonymity, the company is said to be collaborating with advisers to secure at least GBP 1 billion through the sale of a minority stake in the venture, which could be valued at over GBP 5 billion.
The potential sale of a stake in the new venture, which could range from 20% to 40%, might begin as early as October, according to some sources. Virgin Media O2, co-owned by Liberty Global and Telefónica SA, is aiming to attract investments from infrastructure, private equity, pension, and sovereign wealth funds.
Also Read: Swansea Bay City Deal Grants Virgin Media O2 Dark Fiber Network Contract
Discussions are still in progress, and details regarding the timing and amount of the fundraising could be subject to change, the sources reportedly added.
In February, Virgin Media O2, together with major stakeholders, Liberty Global and Telefónica, unveiled its plans to challenge Openreach. The company stated that the new network entity, NetCo, would support fiber adoption and expansion while offering new financing options and potential opportunities for consolidating alternative networks.
Currently, Virgin Media O2 and its partner, nexfibre, have a combined full fiber network covering over five million premises, with their fixed-line network reaching more than 17 million premises.
Together with nexfibre, an independent fiber joint venture encompassing Liberty Global, Telefónica, and Infravia, the separate NetCo and nexfibre networks are set to serve up to 23 million homes. This positions Virgin Media O2 to better compete with Openreach, which aims to deliver full-fiber-to-the-premises (FTTP) services to 25 million premises by 2026.
Read More:
Cellnex UK Secures Long-term Pact with Vodafone Group and Virgin Media O2
Netcracker, VMO2 Expand Digital Transformation Partnership
Virgin Media O2 and Accenture Collaborate on Private 5G Solutions for UK Enterprises
