Virgin Money has received an offer from Clydesdale and Yorkshire Bank (CYBG PLC) to take over the company.
The revised offer, valued at £1.6 billion, will increase Virgin Money shareholders’ interest in the combined company to 38%, up from 36.5%.
The Panel on Takeovers & Mergers has granted an extension to June 18 for CYBG to announce a firm intention to make an offer.
Virgin Money said: “The board of Virgin Money is in the process of reviewing this proposal. There can be no certainty either that an offer will be made nor as to the terms of any offer, if made.”
The two companies said discussions are ongoing regarding other terms and conditions of the proposed combination.
‘UK’s first true national banking competitor’
The boards of both companies have stated that the proposed merger “would create the UK’s first true national banking competitor” offering personal and small and medium sized enterprises an “enhanced alternative to the large incumbent banks”.
Virgin Money was founded in 1995 by Richard Branson and currently has operations in the UK, Australia and South Africa.
[amazon_link asins=’0753519895,0753515032,0571297099,1503052400′ template=’ProductCarousel’ store=’netcom08-21′ marketplace=’UK’ link_id=’5931ad77-90b8-11e8-9b82-3185920a560c’]