(4 May 2004 – Australia) Virgin now wholly owns its financial services business Virgin Money after buying out the 50 percent stake held by AMP’s British offshoot HHG.The nine year joint venture came to an end when Virgin paid A$219.1 million for HHG’s 50 percent share, A$121.7 million of which will be paid immediately with further instalments of A$48.7 million paid over the next two years.
Virgin Money Australia managing director Rohan Gamble said the investment was an “endorsement” of the success of Virgin Money’s Australian operation.
“The focus of the Australian operation will now be on the continued expansion of our credit card business, plus the development of new financial products,” Gamble said.
High profile Virgin boss Sir Richard Branson said the deal signalled an exciting new chapter in Virgin Money’s development.
“With Virgin Money’s UK business performing so strongly and Virgin Money Australia off to such a spectacular start with the credit card, we have the ideal platform from which to enter new territories and new products with real confidence,” Branson said.
In Australia, Virgin Money has issued more than 200,000 credit cards in partnership with Westpac.