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The proprietor of Clydesdale Bank and Yorkshire Bank, CYBG, has sweetened its £1.6bn provide to purchase Virgin Money.
Under the brand new phrases, Virgin Money shareholders would personal 38% of the brand new merged enterprise as a substitute of 36%.
CYBG and Virgin Money mentioned the transfer would create "the UK's first true national banking competitor" as a different to the incumbent banks.
It could be the UK's fifth largest bank with six million private and enterprise prospects and a stability sheet of £70bn.
CYBG has mentioned it's going to preserve the Virgin Money model, topic to a settlement with Richard Branson's Virgin Group.
Virgin Money, which was based in 1995, expanded its enterprise in 2011 when it purchased the remts of Northern Rock for about £747m.
CYBG
- 2.8 million prospects
- 169 branches
- £2.6bn market capitalisation
Virgin Money
- three.3 million prospects
- 74 branches
- £1.5bn market capitalisation
Sir Richard Branson's Virgin Group is Virgin Money's greatest shareholder with a 34.eight% stake within the enterprise.
CYBG's preliminary bid, made final month, supplied 1.1297 of its shares for every Virgin Money share, giving Virgin Money shareholders about 36% of the brand new merged enterprise.
However, the revised bid ups that to 1.2125 shares, giving Virgin Money shareholders about 38% of the mixed group.
CYBG mentioned discussions had been "ongoing" relating to different phrases and circumstances and that the announcement of the revised bid didn't represent an agency intention to make a provide for Virgin Money.
CYBG now has till 17:00 on 18 June to make an agency provide or stroll away from Virgin, below guidelines set down by Britain's Takeover Panel.