Business
Recommended cash offer for Virgin Money UK PLC
Recommended cash offer for Virgin Money UK PLC.
About this update from Nationwide Building Society
[{"type":"text","content":"\n\nNOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION.\nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION.\nFOR IMMEDIATE RELEASE \n\n21 March 2024\nRECOMMENDED CASH ACQUISITION\nOF\nVIRGIN MONEY UK PLC\nBY\nNATIONWIDE BUILDING SOCIETY\n \nSummary and highlights\n· The boards of directors of Nationwide Building Society (\"Nationwide\") and Virgin Money UK PLC (\"Virgin Money\") are pleased to announce that they have agreed the terms of a recommended cash acquisition of the entire issued and to be issued share capital of Virgin Money by Nationwide (the \"Acquisition\").\n \n· Under the terms of the Acquisition, each Virgin Money Shareholder will be entitled to receive:\nfor each Virgin Money Share: 220 pence in cash\ncomprising:\no 218 pence per Virgin Money Share in cash consideration (the \"Consideration\"); and\no a proposed dividend of 2 pence per Virgin Money Share (the \"FY2024 Dividend\"), to be paid (subject to the approval of the Virgin Money Board) as part of Virgin Money's ordinary course FY2024 dividend calendar or, if earlier, shortly prior to Completion.\n· The total value of 220 pence per Virgin Money Share values the entire issued and to be issued share capital of Virgin Money at approximately £2.9 billion on a fully diluted basis and represents a premium of approximately:\no 38 per cent. to the Closing Price of 159.1 pence per Virgin Money Share on 6 March 2024 (being the last Business Day before the commencement of the Offer Period); and\no 40 per cent. to the volume-weighted average Closing Price of 157.5 pence per Virgin Money Share for the three-month period ended 6 March 2024.\nAcquisition Overview \n· The Boards of Nationwide and Virgin Money believe that the Acquisition will combine two complementary businesses, creating the second largest provider of mortgages and savings in the UK.\n \n· Nationwide has grown over time through a series of historical acquisitions to become the UK's largest building society. Nationwide remains wholly committed to being a building society and a modern mutual that m...