Branson says Virgin Group loses third of its value after Brexit

Tue Jun 28, 2016 7:04am EDT
 
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LONDON (Reuters) - Richard Branson, founder and chairman of Virgin Group, said on Tuesday the company had lost about a third of its value since last week's vote by Britons to leave the European Union, adding he believed the country was heading towards a disaster.

Branson said Britain would fall into recession and that there should be a second vote now that people could see the implications of what exiting the bloc would have on the economy.

"This country is going to go into recession. Two of the worst days ever - banks have been pounded means they are not going to lend money, we're going to go into recession," he told the "Good Morning Britain" TV program.

"We are heading towards a disaster. I don't believe the public realized what a mess their vote would cost."

The billionaire entrepreneur said his airline-through-finance group had canceled a "very big" deal since the vote which would have involved some 3,000 jobs.

"We're not any worse than anybody else but I suspect we've lost a third of our value," he said.

Branson called for a second EU membership referendum, saying he believed the public had not been given the true facts by those backing Brexit.

"When Brexiters told the public that people were exaggerating there would be a financial meltdown I think it's been proven they were not exaggerating," he said.

"I think one of the reasons why there should be a second referendum, particularly once the terms are known about what our entry into Europe is going to cost us, the public will then have all the facts."   Continued...

 
Richard Branson unveils the new SpaceShipTwo, in Mojave, California, United States, February 19, 2016.  REUTERS/Lucy Nicholson