Virgin Money reviewing CYBG takeover offer
CYBG has proposed an offer to acquire the entire share capital of Virgin Money, in a deal worth a reported £1.6bn.
Virgin Money is currently reviewing the takeover offer it received on May 7.
Under the terms of the proposal, Virgin Money shareholders would receive 1.1297 new CYBG shares for each Virgin Money share – in total Virgin Money shareholders would own approximately 36.5 percent of the combined group.
CYBG said it recognises the strength and appeal of the Virgin Money brand: “Our proposal would ensure that the Virgin Money brand would play a significant role in the combined group, subject to reaching agreement with Virgin Group Holdings Limited.”
It added: “The combination would create the UK’s leading challenger bank offering both personal and SME customers a genuine alternative to the large incumbent banks.”
The challenger bank, founded by Sir Richard Branson, said it would make a further announcement on the offer in due course and that shareholders should not take any action in relation to this proposal.