Sprint Completes Virgin Mobile USA Acquisition

Following the deal approval from Virgin Mobile USA stockholders

  Sprint announces the completion of Virgin Mobile USA purchase
Sprint Nextel Corporation announced on Tuesday that it had managed to complete the acquisition of Virgin Mobile USA, Inc., a deal announced several weeks ago. According to the company, the purchase of Virgin Mobile USA is expected to offer Sprint the possibility to strengthen its position in the prepaid segment through putting together the Virgin Mobile brand with its Boost Mobile business.

“With continued growth in the U.S. prepaid segment, Sprint is further positioning itself as a leader,” Dan Hesse, Sprint CEO, said. “With Boost’s continued success and the iconic Virgin Mobile brand under one umbrella, Sprint will offer customers value and flexibility with great devices running on a dependable network with great coverage.”

The transaction has been already approved by Virgin Mobile USA stockholders, and the two companies noted that all closing conditions for the transaction had been met through this approval. According to Sprint, Virgin Mobile USA stockholders are to receive shares of common stock of Sprint Nextel in accordance with a series of exchange ratios, which are as follows:

All stockholders of Virgin Mobile USA (excluding Sprint Nextel, the Virgin Group and SK Telecom) will receive 1.3668 shares of Sprint Nextel common stock for each share of Virgin Mobile USA Class A common stock.
The Virgin Group will receive 1.2724 shares of Sprint Nextel common stock for each share of Virgin Mobile USA common stock owned by the Virgin Group.
The Virgin Group will receive 149.6941 shares of Sprint Nextel common stock for each share of Virgin Mobile USA preferred stock owned by the Virgin Group.
SK Telecom will receive 1.2279 shares of Sprint Nextel common stock for each share of Virgin Mobile USA common stock owned by SK Telecom.
SK Telecom will receive 144.4588 shares of Sprint Nextel common stock for each share of Virgin Mobile USA preferred stock owned by SK Telecom.


The two companies also announced that Virgin Mobile USA’s outstanding debt had been retired entirely, and that this also applied to the amounts due under the company's Senior Secured Credit Facility, as well as under the related party Subordinated Secured Revolving Credit Agreement. Users of Sprint’s Boost Mobile or Virgin Mobile USA’s products and services will still enjoy their current deals, Sprint also added.

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By    25 Nov 2009, 18:41 GMT