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CYBG completes £1.7bn takeover of Virgin Money

“I am delighted we have completed the acquisition of the Virgin Money business,” said CYBG chairman Jim Pettigrew
Virgin money
The UK's FCA and the PRA approved the deal earlier this month

Challenger bank CYBG PLC (LON:CYBG) has completed the acquisition of Virgin Money Holdings PLC (LON:VM. after all, conditions for the deal were satisfied.

CYBG, which also owns Clydesdale Bank and Yorkshire Bank, announced an all-share offer to buy Virgin Money for £1.7bn in June. The offer was being implemented by means of a scheme of arrangement to be sanctioned by the court.

The scheme has now become effective after receiving court approval on Friday, CYBG said.

READ: Virgin Money and CYBG merger receives approval from UK's FCA and PRA

“I am delighted we have completed the acquisition of the Virgin Money business,” said CYBG chairman Jim Pettigrew.

“It is clear to us that the combined group can transform the UK banking landscape and offer real benefits to customers and communities throughout the UK.

“Since our initial public offering in 2016, the CYBG board and leadership team has established CYBG as a strong and sustainable business, with a track record of delivery and the credentials to deliver a transformational combination with Virgin Money. This transaction can deliver real value for all shareholders and create a powerful force in UK banking."

READ: CYBG boosts capital position ahead of Virgin Money takeover but ShoreCap thinks Lloyds offers better value

Virgin Money shareholders will receive 1.2125 new CYBG shares for every Virgin Money share held and will own about 38% of the merged business.

CYBG will admit 540,856,644 new shares to list on the London Stock Exchange, while Virgin Money's listing will be cancelled. 

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