CYBG’s preliminary approach offers Virgin Money shareholders a 15% premium compared to the shares’ close on Friday, and a stake in the creation of “the UK’s leading challenger bank”.
Ir represents a first big acquisitive by CYBG since its demerger from National Australia Bank.
It said the combined group could offer personal and SME customers a “genuine alternative to the large incumbent banks.” It would have six million personal and business customers.
Virgin Money took over most of the assets of the former Northern Rock and its Edinburgh base is in the former Scottish Equitable offices in St Andrew Square.
The bank, whose CEO is Jayne-Anne Gadhia, urged shareholders to take no action in the wake of the CYBG play for the company because there can be no certainty that a formal offer will emerge.