Virgin Media O2 seeks £1 Bn Investment for new £5 Bn Network Venture

Virgin Media O2 is reportedly seeking external investors to support its £5 billion (€4.5 billion) newly established network company, which aims to compete with market leader BT Group, according to a Bloomberg report.

Virgin Media O2, a joint venture between Liberty Global and Telefónica, is working with advisers to raise at least £1 billion by selling a minority stake in the new venture. The company's valuation could exceed £5 billion, according to sources who requested anonymity. Supported by Infravia Capital Partners, the company is investing £1 billion in expanding the UK’s broadband infrastructure, with a goal to connect 5 million premises by 2026.

The sale, which could involve offering between 20 and 40 percent of the company, may begin as early as October. Potential buyers include infrastructure funds, private equity, and sovereign wealth funds.

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