The boards of Virgin Money and CYBG have confirmed that the latter has made a revised proposal to Virgin Money and both companies are in discussions regarding an all-share combination .
Under the terms of the revised proposal, CYBG would acquire the entire issued and to be issued ordinary share capital of Virgin Money based on an exchange ratio of 1.2125 new CYBG shares for each Virgin Money share.
This would imply that Virgin Money shareholders would own approximately 38% of the combined group.
Virgin Money shareholders would also be entitled to retain any dividend declared and paid in respect of the interim period ending 30th June 2018.
The revised offer is a 7% increase in the exchange ratio compared with the announcement last month.
The boards of both banks believe that the proposed combination would create a national banking competitor, offering both personal and SME customers an enhanced alternative to the large incumbent banks.
CYBG has also agreed with the Panel on Takeovers and Mergers and the board of Virgin Money an extension to the deadline by which it must announce a firm intention to make an offer (extended to 18th June 2018).
The revised proposal does not impose any obligation on CYBG to make an offer, nor does it evidence a firm intention to make an offer.
Further announcements will be made in due course when appropriate.
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