The Australia and UK-listed CYBG plc has made a revised takeover bid for Virgin Money in an attempt to create the first “true” national competitor in the UK banking sector.
Under the revised bid, CYBG said it would acquire the entire issued ordinary share capital of Virgin Money in an exchange of 1.2125 new CYBG shares for each Virgin Money share, which implied that Virgin Money shareholders would own around 38 per cent of the combined group.
The new proposal represents a 7 per cent improvement on the exchange ratio in the offer made in early May 2018, CYBG told the Australian Securities Exchange.
The two companies said the proposed merger would create the UK’s “first true national banking competitor,” offering both personal and small to medium enterprise customers an enhanced alternative to the large incumbents.
“The proposed combination would provide a powerful full-service banking offer for around six million personal and business customers, bringing together the complementary strengths of CYBG and Virgin Money,” the companies said.
“With this further strengthened customer franchised and national reach, the boards of CYBG and Virgin Money believed the proposed combination would deliver increased value for shareholders and wider benefits to other stakeholders.”
