With both Boards of the companies agreeing to the cost synergies in the potential deal, this is likely to be a no-brainer.
On Monday, the board of CYBG, a lender, and that of British bank Virgin Money stated the former’s acquisition of the latter has significant cost synergies.
The statement comes after CYBG raised its bid premium for Virgin Money.
On Sunday, CYBG had said it had raised its takeover offer by a “7% increase in the exchange ratio through an all-share combination”.
Under the terms of the revised proposal, Virgin Money’s shareholders would own around 38% of the combined group compared to the previous offer wherein they would have held 36.5%.
Further, Virgin Money’s shareholders would also be entitled to retain any dividend declared and paid in respect of the period ending June 30.
CYBG now has until June 18 to make an offer.