LONDON -(Dow Jones)- Virgin Media Inc. (VMED.LN), a provider of broadband, television and telephone services, said Tuesday that it has reached an agreement with HM Revenue & Customs or HMRC, the U.K. tax authority, on certain Value Added Tax matters or VAT, and as a result, the reasonably possible contingent liability previously disclosed and not accrued for by the Company in respect of VAT activities as of March 31, is reduced to GBP23.6 million. MAIN FACTS: -As a result, the reasonably possible contingent liability previously disclosed and not accrued for by the Company in respect of VAT activities as of March 31, is reduced to GBP23.6 million. -In addition, the Company and HMRC have agreed a VAT refund to the Company of GBP81.5 million that will be reflected in the Company's financial statements for the second quarter of 2011. -Shares at 0825 GMT up 7 pence, or 0.4%, at GBP17.71, valuing the company at GBP6.23 billion. -By Razak Musah Baba, Dow Jones Newswires; 44-20-7842-9275; razak.baba@dowjones.com
