(8 April 2010 – UK) British entrepreneur Richard Branson has sold a 21 percent stake of Virgin Money to a US billionaire, as the company gears up to purchase hundreds of branches of the government-owned Royal Bank of Scotland.Wilbur Ross paid £100 million (A$166 million) for his stake in the empire and has also said he may invest up to 10 times more funds in the brand, as Virgin seeks to expand its retail banking services.
Mr Ross acquired his fortune investing in struggling steel and oil companies and made the purchase of his share in Virgin Money through his investment vehicle WL Ross.
The group picked up a banking licence with its acquisition of regional lender Church House in January, giving it a foothold in mortgages and deposit accounts.
Virgin Money will not be the only firm bidding to take away RBS’s 318 branched; National Australia Bank is reportedly one of the few with their eye on the government owned banks.