Virgin poised for stock market

Richard Branson’s Virgin empire could go public as part of a new strategy that will see the group act as a consumer-focused private equity investment firm, a report revealed today.

Chief executive Stephen Murphy said in an interview with The Times that Virgin planned to adopt an investment strategy similar to that used by global private equity giants such as Blackstone and Apax Partners.

The group looks set to sell the businesses it owns on the stock market, kicked off by the planned flotation of Virgin Mobile USA, a joint venture between Virgin Group and US telecoms operator Sprint Nextel, on the New York Stock Exchange.

Virgin Active, the group’s fitness club chain, could be next up for a public listing, with Virgin Atlantic airline also possibly in line for a flotation if major shareholder Singapore Airlines decides to sell its 49% stake.

The strategy marks a significant u-turn for Virgin, which has shunned life in the public glare after a brief appearance on the stock market 20 years ago.

Virgin Group listed in 1986 but was taken private just two years later amid Richard’s frustration with the short-termist City investment attitude.

The group, now run by an executive committee after Sir Richard took a back seat from day-to-day running, is reportedly aiming to use the stock market to help grow a portfolio of Virgin branded investments.

Virgin is set to buy minority shareholdings in new ventures, supply its recognisable brand and help build the businesses up either for sale or flotation.

Management will be left to run the companies independently, although it will appoint directors on the board to protect the brand, according to The Times.

Sir Richard will also act as the public face of new Virgin ventures in a bid to give initiatives a leg-up on launch.

Virgin is understood to be hoping to build its presence in the US, Australia and in emerging economies, such as India and China.