CYBG (CYBG) may be about to bag itself a bargain. The Clydesdale and Yorkshire bank-owner's preliminary approach for Virgin Money (VM.) values the target at just over £1.6bn or 359p a share, a 15 per cent premium to Friday’s closing price. Under the terms of the bid, Virgin Money shareholders would receive 1.1297 new CYBG shares per Virgin share. That would give Virgin’s shareholders a 36.5 per cent stake in the combined group.
IC TIP:
Hold
at
338p
CYBG said it recognised “the strength and appeal of the Virgin Money brand” and that a combination “would create the UK's leading challenger bank offering both personal and SME customers a genuine alternative to the large incumbent banks”. Virgin said it was in the process of reviewing the proposed offer.