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Nationwide Building Society (Nationwide) has placed a £2.9bn ($3.67bn) bid to acquire Virgin Money. Alongside a final dividend of 2p, Nationwide will pay 218p in cash for each share of Virgin Money, which represents a 38% premium to closing share price on March 6, the day before the deal’s outline was announced. Post the acquisition, the combined group with assets of about £366bn ($462.8bn) would become the second-largest player of mortgages and savings in the UK. Virgin Money will also pay a £250mn ($316.1mn) exit fee to the Virgin group to cease using its branding, and £15mn in annual fees till it continues to use the brand. Nationwide also confirmed that the Virgin Money brand will be eventually phased out.
Nationwide’s GBP 5.875% Perp was almost flat at 99.4, yielding 6.74%.
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