Monday, 4 June 2018

Virgin Money and CYBG get extra time to mull £4bn merger

The owner of the Clydesdale and Yorkshire bank brands has been granted more time to discuss a revised offer for a merger with Virgin Money.
Sky News reported on Sunday how CYBG had tabled a higher bid, valuing Virgin at around £1.7bn, amid continuing discussions on creating a new £4bn national bank, including use of the Virgin name.
The pair said on Monday that the Takeover Panel had granted a 14-day extension to the 'put up or shut up' deadline to allow further talks - now set to expire on 18 June.

The statement said: "Under the terms of the revised proposal, CYBG would acquire the entire issued and to be issued ordinary share capital of Virgin Money on the basis of an exchange ratio of 1.2125 new CYBG shares for each Virgin Money share, which implies that Virgin Money shareholders would own approximately 38% of the combined group."

It also pointed to the potential for "significant" cost savings through any merger - in areas including IT infrastructure and infrastructure investment.

There was no word on the likelihood of job losses.

Virgin Money

SKY      News.

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