Virgin Group and Friendi Group are merging their regional telecom operations to create a combined entity to be called Virgin Mobile Middle East and Africa (VMMEA), which will develop and operate mobile telecommunications businesses across the region, the group said Monday.
After signing of the deal, Virgin Group now becomes the largest individual shareholder with a minority stake.
VMMEA, to be headquartered in Dubai, UAE, will be managed by Friendi Group CEO and Founder Mikkel Vinter.
The strategic partnership agreement for the Middle East and Africa will allow the group to manage Virgin Mobile’s current operations in South Africa, as well as Friendi Group’s operations in Oman, Jordan and Saudi Arabia.
This would create a sizeable regional mobile telecom player with more than 1 million customers.
The new group plans to further strengthen its regional leadership position by launching in more markets across the Middle East and Africa, and is targeting a regional customer base of over five million subscribers by 2015 — across both the Virgin Mobile and Friendi mobile brands.
Commenting on the partnership, Sir Richard Branson, founder and president of Virgin, said his company is delighted to have agreed to the strategic partnership with Friendi Group to create Virgin Mobile Middle East and Africa.
“Together, we will create the undisputed regional leader in the Mobile Virtual Network Operator (MVNO) space. Virgin and Friendi Group bring complementary skills and assets to the new venture and I have great confidence in its future success,” Branson said.
According to Mikkel Vinter, CEO and Founder of Friendi Group, the Virgin Mobile brand is one of the most successful and respected MVNO brands globally.
Virgin is the majority shareholder in Virgin Mobile South Africa while Friendi Group is the leading MVNO group in the Middle East.
“The Virgin Group has an excellent track record of operating successful MVNO businesses in other parts of the world, so I am excited about working closely with Virgin Group on rolling out new MVNO operations across Africa and the Middle East,” Vinter said.
