Virgin Money receives £1.6bn takeover bid from CYBG
Virgin Money has announced that it has received a preliminary takeover proposal from CYBG, the parent company of Clydesdale and Yorkshire Bank, which values the lender at £1.6bn.
"CYBG believes the combination would create the UK's leading challenger bank offering both personal and small and medium sized enterprise customers a genuine alternative"
Under the proposal, CYBG would acquired the entire share capital of Virgin Money, and Virgin shareholders would receive 1.1297 new CYBG shares for each Virgin Money share.
The Virgin Money brand is expected to be retained.
The Board of Virgin Money says it is "in the process of reviewing this proposal".
In a statement, CYBG said: "CYBG believes the combination would create the UK's leading challenger bank offering both personal and small and medium sized enterprise customers a genuine alternative to the large incumbent banks.
"The combination would provide a powerful full-service banking offer, including leading digital and mobile banking services, for six million personal and business customers, bringing together the complementary strengths of CYBG and Virgin Money."
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