CYBG now has until June 18 to make an offer
Just hours after British lender CYBG raised its offer to buy rival Virgin Money, the pair has been granted a 14-day extension by the Takeover Panel to discuss the revised offer.
Under the new terms, Virgin Money shareholders would own 38 per cent of the new merged business instead of 36 per cent, according to the BBC.
The statement said: “Under the terms of the revised proposal, CYBG would acquire the entire issued and to be issued ordinary share capital of Virgin Money on the basis of an exchange ratio of 1.2125 new CYBG shares for each Virgin Money share, which implies that Virgin Money shareholders would own approximately 38% of the combined group.”
“The boards of CYBG and Virgin Money believe that the proposed combination would create the UK’s first true national banking competitor, offering both personal and SME customers an enhanced alternative to the large incumbent banks.”
The owner of the Clydesdale and Yorkshire bank brands now has until 1700 GMT on 18 June to make a firm offer or walk away from Virgin, according to rules set down by the Takeover Panel.