Virgin Money shareholders accept Nationwide £2.9bn takeover offer   – Mortgage Strategy

Virgin Money shareholders have voted to accept the £2.9bn takeover offer from Nationwide, which will create the second-largest mortgage lender in the UK. 

The owners of the high street lender passed the move with an 89% majority in favour of the cash offer set out by the mutual.  

The firms aim to complete the sale by the end of the year.    

Virgin Money chairman David Bennett says: “The board of Virgin Money welcomes the outcome of the shareholder meetings that took place earlier today, where shareholders voted strongly in favour of the recommended cash acquisition by Nationwide.   

“We are hopeful that the transaction will complete before the end of the year, subject to the outstanding conditions being satisfied.”      

The surprise deal, announced in March, will see Nationwide offer the Virgin Money shareholders 218p in cash and a 2p dividend to be paid in this financial year, or, if earlier, shortly before the completion of the takeover.    

The offer was a 38% premium to Virgin Money’s 159.1p closing price of pence on 6 March, the day before the deal was announced.     

Nationwide plans to terminate the Virgin brand after four years and will rebrand the bank over the following two years.    

Nationwide members will not vote on the deal.   

Earlier this month, The Co-operative Bank said its £780m takeover talks with Coventry Building Society are at a “well advanced” stage.     

Coventry Building Society’s proposed takeover of the Co-op Bank, announced in April, would create a merged group with £89bn in assets.