VMMEA appoints UBS to conduct strategic review, reports say

Virgin Mobile Middle East & Africa (VMMEA), is reported to have appointed UBS to conduct a strategic review that could include a sale or IPO.

Sources said UBS had been drafted in to explore options, with several strategic buyers said to be interested in acquiring the company that houses MVNO businesses in Oman, Jordan, Saudi Arabia, Malaysia and South Africa. An IPO is also under consideration to allow the company to expand, following its launch of MVNO services in Saudi Arabia. A decision on the review is expected by Q3 2015, sources said.

VMMEA’s two major shareholders are Gulf Investment Corporation and Virgin Group. Minor shareholders include ePlanet Capital, Dolphin International, NTEC and Millennium Private Equity. The company formed following the strategic partnership of Virgin Mobile South Africa and Dubai-based MVNO Friendi Group in June 2012.

VMMEA also recently raised a US$15 million senior secured facility from Bank of London and the Middle East. At the time the company said the money would help fuel the company’s growth in the GCC region and further cement its position as a leading MVNO, with future roll-outs planned in a number of other countries in the Middle East and Africa.