Friendi Group set to take stake in Virgin Mobile South Africa

Virgin Group is not commenting on reports that it is selling a stake in its South African MVNO, and that the CEO, Steve Bailey is resigning from his post.

Citing a well-placed source, TechCentral reported that Virgin will reduce its 55 per cent stake through a sale of an unspecified amount to the UAE based Friendi Group, which already operates a number of MVNOs in the Middle East.

The report suggested that Virgin Mobile South Africa’s other shareholder, Calico Investments which owns the remaining 45 per cent stake will retain its holding, but plans to work with Friendi Group to expand across Africa.

Bailey declined to comment on his reasons for leaving.

Virgin Mobile South Africa was launched in 2006 as a 50:50 joint venture between the Virgin Group and local mobile network, Cell C.

Last February, Cell C sold its stake, with Virgin Group picking up an additional five per cent and Calico Investments of The Bahamas taking the other 45 per cent. Financial terms of that transaction were not disclosed.