CYBG-Virgin Money merger gets FCA and PRA green light
Virgin Money UK
1,753.40p
16:54 20/05/24
CYBG and Virgin Money will be able to complete their merger later this month after gaining approval from financial regulators.
Banks
4,341.14
17:14 20/05/24
FTSE 250
20,873.33
17:14 20/05/24
FTSE 350
4,637.24
17:14 20/05/24
FTSE All-Share
4,590.38
17:13 20/05/24
Virgin Money Holdings (UK)
349.30p
16:34 12/10/18
The Financial Conduct Authority and the Prudential Regulation Authority sent letters authorising the deal on 3 October.
As a result, CYBG said the scheme of arrangement should be sanctioned at a court hearing on 12 October, which will be the last day of dealings in Virgin Money shares, with the takeover expected to become effective on 15 October, when new CYBG shares will be issued an begin trading.
This is in line with management’s previously stated expectation for completion in the fourth quarter of the year.
CYBG shares rose 1.4% to 313.9p on Thursday, while Virgin Money's rose almost 3% to 379.6p.
Broker Shore Capital said it currently saw see fair value for CYBG at 345p and for Virgin Money at 420p.
"While this is perhaps enough to begin to consider a more positive stance, we continue to see much better upside elsewhere in the domestic mainstream banking sector," analysts said.